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28 May 2013
Flash: Yen weakens in Asian trading session after recent gains - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the yen has weakened in the Asian trading session following recent modest gains with USD/JPY rising back towards the 102-level.
He continues to see that financial market conditions in Japan still remain volatile in the near-term with the Nikkei 225 index having extended its decline early in the Asian trading session towards the 14,000-level before bouncing modestly higher throughout the day. He adds that the Nikkei 225 index remains around 10% lower than late last week but 65% higher than the low from November of last year. Further, he comments that volatility also remains elevated in the Japanese government bond market with the 10-year JGB yield rising back above 0.90% overnight. Hardman finishes by commenting that, “Academic Koichi Hamada who is a close advisor to PM Abe described the recent sharp sell off in the Japanese equity market as a “natural correction” with Abenomics working as well or better than expected. He called on the BoJ to ease monetary further if required. He also stated that USD/JPY at the 100-level may restore competitiveness to Japanese industry with more yen weakness “not out of the question”.”
He continues to see that financial market conditions in Japan still remain volatile in the near-term with the Nikkei 225 index having extended its decline early in the Asian trading session towards the 14,000-level before bouncing modestly higher throughout the day. He adds that the Nikkei 225 index remains around 10% lower than late last week but 65% higher than the low from November of last year. Further, he comments that volatility also remains elevated in the Japanese government bond market with the 10-year JGB yield rising back above 0.90% overnight. Hardman finishes by commenting that, “Academic Koichi Hamada who is a close advisor to PM Abe described the recent sharp sell off in the Japanese equity market as a “natural correction” with Abenomics working as well or better than expected. He called on the BoJ to ease monetary further if required. He also stated that USD/JPY at the 100-level may restore competitiveness to Japanese industry with more yen weakness “not out of the question”.”