Yen rises in Asia after tumble
TOKYO - The yen rebounded in Asia on Wednesday after it tumbled on
the Bank of Japan's move to boost lending to commercial banks, as
investors eye US housing data and minutes from the Federal Reserve's
last meeting.
In Tokyo trade, the dollar bought 102.21 yen, down from 102.40 yen in
New York Tuesday.
The euro slipped to 140.67 yen from 140.89 yen while it was almost
flat at $1.3762 against $1.3759. The unit was under pressure after a
closely-watched survey showed investment sentiment in economic
powerhouse Germany slipped from recent highs amid uncertainty about the
strength of a US recovery.
On Tuesday, the Japanese currency plunged after the BoJ held off
expanding its asset-buying program but said it would boost some lending
schemes to stimulate borrowing.
The move was taken as showing a willingness to launch future easing
measures -- which tend to weigh on the yen -- as Japan gets set for a
sales tax rise in April that some fear will derail a recovery in the
world's third-largest economy.
The BoJ meeting came a day after fresh data showed that while Japan's
economy expanded by 1.6 percent over last year, it slowed to 0.3 percent
in the October-December quarter, presenting a major challenge for Prime
Minister Shinzo Abe to reverse almost two decades of deflation.
On Wednesday investors were looking at minutes from Ben Bernanke's
last meeting as Fed chief, while his successor Janet Yellen gets set to
face hard questions as the G20 holds its first meeting of the year this
weekend.
Yellen will likely receive a grilling over the negative impact on
emerging economies from the Fed's move to pull back on its stimulus
drive, known as quantitative easing.
Currencies from Argentina to Russia, South Africa and Turkey have
been in freefall, in part because heavyweight US investors are
repatriating funds in anticipation of higher returns at home as the Fed
tightens years of relaxed monetary policy.
AFP |