Flexible About The Yen's

(Reuters) - The Bank of Japan kept monetary policy steady as expected on Tuesday, holding off any new steps to help meet its new inflation target and boost activity ahead of a more thorough assessment of the economy later this month. The decision was widely expected by markets, although the dollar still slid against the yen after the announcement on selling by traders who had speculated that the central bank could surprise them as it did in February. The market view was BOJ policymakers would prefer to hold fire at least the next policy meeting on April 27, when revised long-term forecasts should show that a sustained end to deflation is a long way off, giving them justification to act. Traders are already factoring in a monetary easing in late April, as the government keeps up pressure ...

The Asian region witnessed a number of economic data where the Chinese data helped in supporting markets with better than expected manufacturing expansion. The data helped further in clearing the uncertainty yet still we can see that Asian economies are suffering the sluggish global growth and the downside pressure of the debt crisis. The Japanese industrial production rose more than analysts forecasted in December, where the manufacturers bolstered production to make up for disruptions caused by Thailand’s worst floods in 70 years. Industrial production rose 4.0% according to the preliminary December estimate that followed a drop of 2.7% the previous month and opposed expectations of -3.0%. Japanese manufacturers from Honda to Toyota Motor are very optimistic about global and domestic ...

The Japanese industrial production rose more than analysts forecasted during December, where the manufacturers bolstered their production to make up for disruptions caused by Thailand’s worst floods in 70 years. Industrial production rose 4.0% according to the preliminary December estimate that followed a drop of 2.7% the previous month and opposed expectations for -3.0%. On the year production was down 4.1%, marginally higher from the previous drop of 4.2% and better than the expected slump of 5.0%. The Japanese Manufacturers from Honda to Toyota Motor are very optimistic about global and domestic demand, as they recover from a year full of natural disasters from Japan's earthquake to Thailand's floods; on the other hand companies are flexible about the yen's unceasing appreciation and ...

(Reuters) - The U.S. Treasury again shied away from labeling China a currency manipulator on Tuesday, but it rapped the country for not moving quickly enough on exchange rate reforms. The United States also chided Japan for stepping into the currency market to stem the yen's rise, and urged South Korea to use such interventions sparingly. Some U.S. politicians have argued that China has gained an unfair competitive edge in global markets by keeping the yuan artificially low to boost exports, and pressure has mounted in Congress for President Barack Obama to punish China. But the administration prefers to tread softly and use diplomacy. The U.S. Treasury, in a semi-annual report, as usual said that statutes covering a designation of currency manipulator "have not been met with respect to ...

(Reuters) - The euro was beaten down further in Asia on Tuesday, plunging to a record low versus the Swiss franc and sinking to a four-month trough against the dollar on growing concerns that the euro zone's sovereign debt crisis was spreading. The single currency fell as low as $1.3932 -- its lowest since March 17 -- after a slew of stop-loss orders were triggered below $1.3980. The euro fell broadly, dropping to an all-time low of 1.1660 Swiss franc. The euro was on the defensive as an emergency meeting by European financial officials failed to offer fresh measures to tackle the region's debt problems, dealers said. Market participants were especially concerned about the debt of countries such as Spain and Italy, which came under strong selling pressure the day before. "The market ...

(Reuters) - The yen soared on Friday after the worst earthquake on record to hit Japan spurred a safety bid, and it could rise further next week if insurers scramble to raise cash by selling their foreign assets. The yen initially fell to a two-week low against the dollar but then shot higher as the full extent of the devastation became clear. The quake triggered a ferocious tsunami, killing at least 1,000 people. Worries about the impact on a fragile Japanese economy prompted investors to cut exposure to risk, traders said, with Japanese investors who had used cheaply borrowed yen to invest abroad bringing the money back home. The dollar fell 1.2 percent to 81.87 yen, its biggest one-day decline since December 3, while the yen also rallied against the euro, pound and Swiss franc. The ...

(Reuters) - The dollar dropped on Monday after a Group of 20 meeting produced enough agreement despite discordant policies to keep the status quo on the trade of selling the U.S. currency and buying stocks and commodities such as copper. Major European stock markets were up shortly after opening with the FTSEurofirst 300 .FTEU3 index 0.40 percent higher. While the G20 meeting did not reach a consensus on details such as numerical targets for a country's economic imbalances, the group found common ground on the need for more "market determined" exchange rates and concluded with a shift in power to developing economies in the International Monetary Fund -- enough to avert an all-out currency war, for now. "It looks like the market has taken the G20 as a green light to continue with the ...

(Reuters) - Japanese Finance Minister Yoshihiko Noda said on Wednesday that South Korea's leadership of the Group of 20 nations forum could come under question due to its regular currency market intervention. Noda, speaking to lawmakers in parliament, also said he could not answer whether or not the government will conduct currency intervention as the yen hovers near a 15-year high versus the dollar. Noda drew a distinction between Japan's currency intervention last month, which appears so far to have been a one-off move, and more frequent intervention by South Korea and China. But this is unlikely to discourage criticism of Japan's intervention as leaders struggle to reach a consensus on the global currency system to prevent competitive currency devaluation from damaging economic ...

(Reuters) - Japan's prime minister signaled on Thursday authorities would keep intervening to curb yen strength as sagging manufacturing confidence underscored the threat the currency poses to the fragile economic recovery. A Reuters monthly poll that tracks the Bank of Japan tankan report showed manufacturing confidence dropped in September from August for the first time in nearly a year as companies struggled with the yen's rise to a 15-year high against the dollar. Responding to the concerns about the yen's rise, authorities intervened in markets on Wednesday for the first time in six years to knock the currency lower by selling an estimated 2 trillion yen ($23 billion). Prime Minister Naoto Kan, who fended off a leadership challenge from a ruling party powerbroker this week, pointed ...