Arab Today, arab today yen plunges to almost 9month low
Last Updated : GMT 14:38:28
Arab Today, arab today
Arab Today, arab today

Yen plunges to almost 9-month low

Arab Today, arab today

Arab Today, arab today Yen plunges to almost 9-month low

Tokyo - Arabstoday

Bank of Japan Governor Masaaki Shirakawa’s inflation goal is succeeding where record intervention failed, as the yen heads for its steepest monthly drop in two years. The currency reached an almost nine-month low after the BoJ, which has struggled for more than a decade against deflation, said on Feb. 14 it aimed for 1 percent annual gains in consumer prices and would add ¥10 trillion ($123 billion) to the economy. Traders are paying record premiums for options to buy the dollar versus the yen for three, six and 12 months. Bullish bets on Japan’s currency have fallen 70 percent from the end of last month. Shirakawa needs a weaker yen to help Japan export its way out of a recession made deeper by last year’s earthquake and the worst nuclear crisis in a generation. Energy imports to replace lost capacity have reversed trade surpluses that made the currency a refuge in a slowing global economy. Prospects of higher inflation are driving it down, at least for now. “The BoJ seems to have shifted their stance quite aggressively,” Mansoor Mohi-uddin, the Singapore-based chief currency strategist at UBS AG, said by telephone on Feb. 24. “It’s definitely a situation where the trend is now reversed.” UBS cut its year-end yen projection to 85 per dollar from 80, saying the BoJ’s inflation goal will help reinforce expectations that policy will remain easier for longer, a note from the brokerage said on Feb. 22. Japan has posted an annual current-account surplus, the broadest measure of trade, since at least 1985, according to the Ministry of Finance, turning the nation into the world’s largest creditor. It had 251.5 trillion yen in net assets overseas at the end of 2010, the latest data from the ministry show. That’s almost the size of Germany’s annual economic output in dollar terms. The Trade Ministry said in November that the current account may slide into deficit from the middle of this decade, and Japan posted a record 1.48 trillion-yen trade deficit, a narrower measure, last month. Through the global financial crisis, the currency gained from more than 120 to the dollar in 2007 to about 80 as Japanese households accumulated 1,471 trillion yen in assets, helping the government finance its deficits. Domestic investors hold more than 90 per cent of Japan’s public debt, the world’s largest at about double the size of the economy, allowing the government to borrow for 10 years at less than 1 per cent interest. The currency climbed against all 16 most-traded counterparts in 2011 for a second-straight year. Even after the recent decline, the yen is 17 per cent stronger than its five-year average. It will be at 77 by the end of March, according to the median estimate of currency analysts surveyed by Bloomberg. “As long as Japan maintains its current-account surplus, funds will accumulate inside the country and be invested in government bonds via bank deposits,” Yunosuke Ikeda, head of Japan foreign-exchange research at Nomura Securities Co., the nation’s biggest brokerage, said by phone on Feb. 23. “A plunge in the yen is intriguing as a tale, but I am skeptical that it will actually come about.” The yen slid against the dollar for five-consecutive days through Feb. 22, the longest stretch since April, and is set for a 6 percent plunge in February, the biggest monthly drop since December 2009. It reached 81.67 against the dollar today, the weakest level since May, before trading at 81.09 at 11:09 am in Tokyo. The yen slid to 109.93 per euro, the least since October. Government currency sales totaled 14.3 trillion yen last year, the third-biggest annual sum on record, Ministry of Finance data show. That didn’t stop the yen from rising to 76.03 per dollar this month before the BOJ’s shift, less than 1 per cent off its record of 75.35 reached on Oct. 31. Combined with regular purchases and earlier stimulus measures, the BoJ will acquire 32.7 trillion yen in Japanese government debt this year, compared with the government’s planned issuance of 149.7 trillion yen for the 12 months starting April 1. Yields on Japan’s two-year bonds slid to 0.1 per cent on Feb. 16, the lowest since October 2010. “The shift toward inflation targeting as well as the announcement to buy further JGBs is quite significant,” Frederic Neumann, the Hong Kong-based co-head of Asian economic research at HSBC Holdings Plc., said by phone on Feb. 22. The yen may extend declines this year to 84 per dollar, he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today yen plunges to almost 9month low Arab Today, arab today yen plunges to almost 9month low

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today yen plunges to almost 9month low Arab Today, arab today yen plunges to almost 9month low

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Writing's on the wall for Trump, Zuckerberg

GMT 09:05 2017 Thursday ,19 October

Writing's on the wall for Trump, Zuckerberg
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday