Yen Trades Near Three-Week Low Before BOJ’s Factory Survey
QuoteDislikedApril 1 (Bloomberg) -- The yen traded near a three-week low versus the dollar after posting its biggest quarterly loss since 2001 before a Bank of Japan survey forecast to show sentiment among manufacturers fell to the lowest in more than 30 years.
QuoteDisliked“The Japanese economy is doing very poorly in the current recession,” said Kathy Lien, director of foreign-exchange research at GFT, an online currency-trading firm in New York. “There’s no chance that Japan is going to be recovering without the U.S. economy or the global economy recovering first.”
QuoteDislikedJapan’s currency tumbled 8.4 percent against the dollar in the first quarter, the worst performance since the last three months of 2001, and weakened 3.5 percent versus the euro, the first quarterly drop since June.
Confidence among Japan’s large manufacturers dropped to minus 55 in the first quarter from minus 24 in the previous period, according to a Bloomberg survey of economists before today’s Tankan report from the Bank of Japan.
QuoteDislikedThe euro rose for the first time in three days against the yen on speculation assets denominated in Europe’s currency will maintain their yield advantage over those in Japan even if the European Central Bank cuts borrowing costs tomorrow.
Before Forex I was tall, and clean shaven. Now I am an Ewok.