Japanese Yen Gives a Little Breather in the Asian Session
The yen finally kicked a few toes during the Asian trading session, but it still lounges around the 160‑per‑dollar mark—well, more precisely, the 160‑ish range that serves as a 38‑year low for this stubborn currency.
Why the Sudden Dip Feels Like a Stinky Sock
When the Japanese currency wore a sudden drop, the whiff that followed was the anxiety of possible intervention by the authorities. The ball didn’t stay square.
- Finance Minister Shunichi Suzuki sounded the alarm: the yen’s weakness is a real concern, and he’s ready to jump in if the tape looks shaky.
- Helm‑ship, Vice Finance Minister Masato Kanda, echoes that sentiment too.
- Meanwhile, US-Japan interest‑rate differences favor the classic carry‑trade, keeping the yen on the hook for further pressure.
Things Surge: Japan’s 30‑Year Bond Yields Turn Up the Heat
Retail trade data came in stronger than expected, nudging Japan’s 30‑year government bonds behind the scenes into a record high for 2010. The Bank of Japan (BoJ) hinted that if inflation climbs as forecasted, rate hikes might be on the cards.
- If the BoJ keeps its hawkish stance, yields are poised to keep climbing.
- Investors are currently gawk at upcoming inflation releases from both Japan and the United States.
Upcoming Data: The Poisoned Apple of the US
The US Core PCE figure is due tomorrow, with analysts predicting a 2.6% year‑on‑year rise—just under the current 2.7% read. If those numbers look sweeter than expected, the yen could feel a bit more bruised.
- Higher than expected Japanese inflation could clamp down on yields and provide a little support for the yen.
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