- Title: JAPAN: Yen edges higher and Nikkei flat after dip; intervention caution buoys
- Date: 23rd September 2010
- Summary: TRADERS WORKING AT TOKYO FOREX UEDA HARLOW'S OFFICE MONITOR SHOWING U.S. DOLLAR BEING TRADED AT 84.82 YEN VARIOUS OF TRADERS WORKING MONITOR SHOWING EURO BEING TRADED AT 112.87 YEN MORE OF TRADERS WORKING U.S. AND JAPANESE FLAGS TOKYO STOCK EXCHANGE (TSE) BUILDING VARIOUS OF CIRCULAR ELECTRONIC TICKER (2 SHOTS) ELECTRONIC STOCK BOARD CLOSE UP OF ELECTRONIC STOCK BOARD SHOWING NIKKEI AVERAGE CLOSED FOR MORNING AT 9605.12 UP 3.01 TSE LOGO TRADE MONITORING FLOOR VARIOUS OF OFFICIALS MONITORING STOCK TRADES VARIOUS OF CIRCULAR ELECTRONIC TICKER (3 SHOTS)
- Embargoed: 8th October 2010 13:00
- Keywords:
- Location: Japan
- Country: Japan
- Topics: Finance
- Reuters ID: LVAAAYEIKBB1JD9JCPANM26F2DDM
- Story Text: The dollar fell to its lowest level Wednesday (September 22) since Japanese currency intervention, after a Federal Reserve statement intensified speculation of further U.S. easing.
The yen and euro rose against the greenback, raising expectations that Japan would again intervene after a break of 85 to the dollar.
Prime Minister Naoto Kan said in a Financial Times interview that intervention was "unavoidable", if there was a drastic change in the currency.
Kan said Japan intends a complete package of measures to stimulate domestic demand as well as to weaken the currency.
Japan last week carried out its first intervention in six years, and market players said hope of more was keeping shares solidly supported.
Japan's Nikkei stock average held steady on Wednesday after an earlier dip, buoyed by the dollar's edging back and expectations that a strong yen rise would bring Japanese intervention.
Exporters continued their decline this week with the Japanese currency's renewed rise.
Panasonic, though, bucked the trend after a Nikkei newspaper report that the consumer electronics giant would abandon new share issuance and loans to finalise its Sanyo Electric buyout.
Sharp also gained on plans to buy private solar power company Recurrent Energy for up to $305 million, hoping to boost its photovoltaic cell business.
Investors had hoped that, with recent improvements in economic data, the Fed would issue a more upbeat outlook or clarify the measures it would take to stimulate demand.
But Fed Chairman Ben Bernanke has ratcheted up the central bank's focus on the threat of deflation that, combined with a grimmer take on the economy hinting at lower growth projections, appeared to clear the way for a new phase of bond buying, or quantitative easing.
The Fed also kept overnight interest rates unchanged near zero, as expected. - Copyright Holder: REUTERS
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