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Market Review - 21/01/2009 19:06 GMT
Japanese yen rallies to the highest since 1995 before retreating on intervention fears
The greenback tumbled to 87.10 against the Japanese yen, the lowest since 1995, on active cross buying in jpy after the expiration of sizeable options with strike price at 90.00 in New York session, however, dollar rebounded in late trading to around 89.50 on speculation that Japan's Ministry of Finance would intervene in the currency markets to curb the yen's ascent.
The U.S. currency rallied against Swiss franc to as high as 1.1617 after SNB Vice Chairman Philipp Hildebrand said the Swiss National Bank was ready to pull out all stops to avoid deflation and may even resort to unlimited intervention by buying other currencies at a fixed rate. Euro also rose sharply versus the Swiss franc fm 1.4735 to 1.5050.
Investors are now expecting the Bank of England will probably soon start buying 'a rather wide range of financial assets' in an effort to increase money supply and boost the economy. The British pound tumbled to a low of 1.3620, the lowest since 1985, on active cross selling in sterling. The sterling fell sharply fm 126.16 to a record low of 119.44 versus the Japanese yen.
The single currency weakened to 1.2825 against the U.S. dollar after Standard & Poor’s downgraded the credit rating of Portugal. Euro tumbled versus the Japanese yen from 117.23 to 112.08.
Thursday will see the release of Japan’s trade balance, eurozone industrial production, U.K. CBI industrial trend, U.S. building permits, housing starts and jobless claims and house price index.
Japanese yen rallies to the highest since 1995 before retreating on intervention fears
The greenback tumbled to 87.10 against the Japanese yen, the lowest since 1995, on active cross buying in jpy after the expiration of sizeable options with strike price at 90.00 in New York session, however, dollar rebounded in late trading to around 89.50 on speculation that Japan's Ministry of Finance would intervene in the currency markets to curb the yen's ascent.
The U.S. currency rallied against Swiss franc to as high as 1.1617 after SNB Vice Chairman Philipp Hildebrand said the Swiss National Bank was ready to pull out all stops to avoid deflation and may even resort to unlimited intervention by buying other currencies at a fixed rate. Euro also rose sharply versus the Swiss franc fm 1.4735 to 1.5050.
Investors are now expecting the Bank of England will probably soon start buying 'a rather wide range of financial assets' in an effort to increase money supply and boost the economy. The British pound tumbled to a low of 1.3620, the lowest since 1985, on active cross selling in sterling. The sterling fell sharply fm 126.16 to a record low of 119.44 versus the Japanese yen.
The single currency weakened to 1.2825 against the U.S. dollar after Standard & Poor’s downgraded the credit rating of Portugal. Euro tumbled versus the Japanese yen from 117.23 to 112.08.
Thursday will see the release of Japan’s trade balance, eurozone industrial production, U.K. CBI industrial trend, U.S. building permits, housing starts and jobless claims and house price index.
