Yen Plunges To 3-week Low Against Euro
The yen staged a steep slide across the board as a rally in most of Asia-pacific stocks prompted investors to buy higher-yielding assets.
The yen slumped to a 3-week low of 133.93 against the euro around 8:20 pm ET, compared to 133.51 hit late New York Wednesday. On the downside, support is seen around the 134.4 level for the yen.
The yen also traded near a 3-week low of 88.44 against the Swiss franc at this time and this may be compared to Wednesday’s New York session closing value of 88.15. On the downside, the yen may target the 88.8 support level.
The Japanese currency also drifted lower to 143.61 against the pound and 89.67 versus the US dollar by 8:20 pm ET and this may be compared to Wednesday’s New York session closing values of 142.97 and 89.46, respectively. As of now, the yen is trading at 143.5 against the pound and 89.57 versus the greenback.
With auto sales showing a notable pullback following the end of the government’s cash-for-clunkers program, the Commerce Department released a report yesterday showing that retail sales experienced a notable decline in September.
The report showed that retail sales fell 1.5 percent in September following a revised 2.2 percent increase in August. With the monthly decrease, retail sales in September were down 5.7 percent compared to the same month a year ago.
Additionally, the minutes from the latest Federal Reserve meeting showed that the Fed raised its forecast for real GDP growth over the second half of 2009 and over 2010, citing a likely improvement in consumer spending. Nonetheless, the Fed also indicated little concern over near term inflation.
Against the Canadian dollar, the yen declined to a fresh 7-week low of 87.78 around 8:20 pm ET. The petro-linked loonie soared as crude oil moved closer to $76 per barrel. The loonie-yen pair that closed yesterday’s deals at 87.42 is presently quoted at 87.7 with 88.2 seen as the next target level.
The yen tumbled to a fresh yearly low of 66.84 against the NZ dollar and 82.38 versus the Australian dollar around 8:20 pm ET. The yen, which closed yesterday’s deals at 66.21 against the kiwi and 81.87 versus the aussie is presently quoted at 66.72 and 82.28, respectively.
Consumer prices in New Zealand climbed 1.7 percent on year in the third quarter, Statistics New Zealand said today, marking the slowest rise in five and a half years. That was higher than forecasts for a 1.1 percent annual expansion following the 1.9 percent increase in the previous three months.
Looking ahead, Japan is scheduled to release final industrial production report for August. Preliminary August figures showed a 1.8 percent gain on month and an 18.7 percent decline on year, and the final numbers are expected to remain close to those figures.
