JAPAN: US dollar hits 80 Japanese yen for the first time since August as offshore accounts continue buying

Record ID: 466105

  • Title: JAPAN: US dollar hits 80 Japanese yen for the first time since August as offshore accounts continue buying
  • Date: 23rd February 2012
  • Summary: TOKYO, JAPAN (FEBRUARY 22, 2012) (REUTERS-ACCESS ALL) VARIOUS OF CURRENCY TRADERS IN OFFICES OF UEDA HARLOW FX TRADER BEHIND JAPANESE AND U.S. FLAGS DOLLAR/YEN EXCHANGE RATE ON BOARD SHOWING 80.02 DOLLARS TO THE YEN MORE OF TRADERS FEMALE TRADER LOOKING UP SCREEN SHOWING EXCHANGE RATES (SOUNDBITE) (English) HIDEYUKI SANO, REUTERS SENIOR MARKET CORRESPONDENT SAYING: "If this continues that could have a very negative impact on the economy especially because the price of oil is rising when Japan needs to import quite a lot of oil." TOKYO, JAPAN (FILE) (REUTERS-ACCESS ALL) EXTERIOR OF BANK OF JAPAN (BOJ) ENTRANCE TO BOJ PEOPLE ENTERING ENTRANCE TO BOJ SIGN IN JAPANESE READING "BANK OF JAPAN NORTH GATE" PEOPLE WALKING DOWN SIDEWALK NEXT TO BOJ
  • Embargoed: 9th March 2012 12:00
  • Keywords:
  • Location: Japan, Japan
  • Country: Japan
  • Topics: Economy
  • Reuters ID: LVA9EK45NRHU979IE65C4MGNLCW6
  • Story Text: The yen hit a six-month low against the dollar on Wednesday (February 22), as Japanese importers and offshore players sold the currency.
    The yen extended its losses in the wake of the Bank of Japan's surprise monetary easing last week, with the dollar rising above 80.00 yen for the first time since August 2011, when the greenback rose to as high as 80.25 yen.
    The yen also retreated on the crosses, with the Australian dollar climbing 0.5 percent to 85.35 yen and the euro rising 0.4 percent to 105.96 yen.
    The dollar has risen roughly 5 percent against the yen so far in February, putting it on track for its biggest monthly percentage gain since March 2010.
    In addition to the BOJ's monetary easing, the yen has come under pressure this month after data showed that Japan's current account surplus -- a major and constant support for the yen -- fell to a 15-year low last year.
    While this will bring some relief to Japan's exporters, the dollars rise is not all good news.
    As the Iranian nuclear row and related oil price jump appears to have swooped back onto the radar for global investors, the rising US dollar against the yen threatens to increase the energy risk for a nation still reeling from a nuclear crisis triggered by the tsunami of March 11, 2011.
    "If this continues that could have a very negative impact on the economy especially because the price of oil is rising when Japan needs to import quite a lot of oil," Hideyuki Sano, Reuters senior market correspondent said.
    The yen has been edging lower since the Bank of Japan surprised investors last week with additional monetary easing, offering a respite for policymakers who worry that a strong currency depresses exports and harms the economy.
    A senior finance ministry official speaking to Reuters also attributed the yen's weakening to the euro zone's agreement on a Greek rescue package on Tuesday (February 21).
    But the official said market speculation that could contribute to the yen's rise is persisting and Japan will continue to monitor currency moves and respond as appropriate.
  • Copyright Holder: REUTERS
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