The Dollar continued its longest loosing streak against the Yen in 8 Months, as investors bet that the Federal Reserve will maintain its bond-buying program in an effort to cap borrowing costs.
As data shows that the U.S. economy is losing momentum, expectations are that the Fed will likely maintain its current rate of asset purchases. This has spurred on Dollar weakness today.
The Fed is due to conclude its latest meeting today. Currently it is purchasing $85 billion of bonds a month in the third round of its quantitative-easing strategy. The aim is to put downward pressure on U.S. borrowing costs.
As the likelihood of any slowing down of the Q.E program by the Fed wanes, this has pushed Treasury yields to their lowest levels for 2013. In turn, this has seen Japanese investors turn away and is resulting in Yen gains following seven months of declines.
A report is due out today that is expected to show that U.S. private employers have added the fewest jobs for six months.
Expectations are that the Roseland, New Jersey based ADP Research Institute will reveal that private employment has risen by 150,000 in April, having gained 158,000 in March. On Friday Jobs data will be released by the Labor Department.
The greenback dropped 0.1% to 97.38 Yen and was little changed per Euro at $1.3166. The Euro dropped by 0.1% to 128.22 Yen while the Australian Dollar declined by 0.1% to 100.92 Yen.
In Asia, the MSCI Asia Pacific Index of stocks fell by 0.4% and so ended a five day gain streak.
In a report out earlier, China's manufacturing purchasing manager's index dropped to 50.6 in April from 50.9 in March. Any reading above 50 indicates expansion.
As the likelihood of any slowing down of the Q.E program by the Fed wanes, this has pushed Treasury yields to their lowest levels for 2013. In turn, this has seen Japanese investors turn away and is resulting in Yen gains following seven months of declines.
A report is due out today that is expected to show that U.S. private employers have added the fewest jobs for six months.
Expectations are that the Roseland, New Jersey based ADP Research Institute will reveal that private employment has risen by 150,000 in April, having gained 158,000 in March. On Friday Jobs data will be released by the Labor Department.
The greenback dropped 0.1% to 97.38 Yen and was little changed per Euro at $1.3166. The Euro dropped by 0.1% to 128.22 Yen while the Australian Dollar declined by 0.1% to 100.92 Yen.
In Asia, the MSCI Asia Pacific Index of stocks fell by 0.4% and so ended a five day gain streak.
In a report out earlier, China's manufacturing purchasing manager's index dropped to 50.6 in April from 50.9 in March. Any reading above 50 indicates expansion.
On May 10th, Japan's Ministry of Finance is set to release its next update on foreign bond transactions. This follows April data which showed that domestic money managers had been net sellers for a sixth-straight week.
So far this year, the Yen, when compared 10 other developed nation currencies, has been the worst performer. This has been in line with an unprecedented monetary easing policy by the Bank of Japan (BoJ) which has lead to more speculation that Japanese investors would purchase higher-yielding offshore debt.
As long as that policy remains in effect, a lid will be kept on the Dollar- Yen while the Japanese remain big sellers of foreign assets.
So far this year, the Yen, when compared 10 other developed nation currencies, has been the worst performer. This has been in line with an unprecedented monetary easing policy by the Bank of Japan (BoJ) which has lead to more speculation that Japanese investors would purchase higher-yielding offshore debt.
As long as that policy remains in effect, a lid will be kept on the Dollar- Yen while the Japanese remain big sellers of foreign assets.
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