• Yen Declines On Noda’s Comments
  • Yen Declines On Noda’s Comments

    David Sumner | 09:00 | 15/11/12
    In the Forex, the Yen weakened the most in eight months against the U.S. Dollar as Japan’s Prime Minister, Yoshihiko Noda, stated that he was ready to ...

In the Forex, the Yen weakened the most in eight months against the U.S. Dollar as Japan’s Prime Minister, Yoshihiko Noda, stated that he was ready to dissolve Parliament. However, the polls show that if elections were held today, the Prime Minister’s Democratic party would lose. The Yen declined against the remainder of its Forex exchange counterparts on speculation the opposing party will win and will apply pressure on the central bank to engage in more aggressive monetary stimulus.

In the meantime, the U.S. Dollar extended losses versus the 17-nation currency after the Federal Reserve published the minutes from the October policy meeting. The minutes indicated that several of the central bank’s officials believe in the need for further easing in the coming year. Those policy makers stated that the Fed needs to increase the purchase of bonds after Operation Twist expires. The greenback was also weighed by lackluster retail sales figures which showed a 0.3% decline, the first in four months.

Retail sales also went down in New Zealand, a factor that caused its currency to fall against the majority of its peers. According to the latest release, retail sales dipped 0.4% during the months between July and September.

In other foreign currency trading news, the British Pound dropped the most in two weeks versus the Euro as the Bank of England suggested that the U.K.’s economy may contract in the final quarter of this year. This raised speculation that the bank may opt for additional stimulus in order to bolster growth.

 

Dow Jones
-0.92%
16461.00
Nasdaq
-0.83%
4382.85
S&P 500
-0.73%
1927.11
DAX
0.60%
8940.14
Hang Seng
-0.27%
23341.00
Nikkei
-0.17%
15170.00

Login

User Name:
Password: