For the second day in a row, the U.S. dollar recovered against the Japanese Yen, but by the end of the North American trading session, the dollar had given up most of its earlier gains. The Bank of Japan has a monetary policy decision this evening. The central bank is not expected to alter interest rates but could make comments about an exit strategy which could affect the Yen. Japanese lawmakers are generating considerable amount of news. Hirohisa Fujii, a former finance minister and a fore-running candidate to take the post again, confirmed his party’s stand on the value of the Yen. Mr. Fujii is a strong proponent of allowing the Yen to freely trade, which suggests that he does not support intervention. Fujii even said that a stronger Yen would help to weaken Japan’s dependence on exports. Fujii noted that 60% of growth coming between 2002 and 2007 was a result of exports, “a bad balance” during times when foreign demand decreases. The following policy would further burden struggling automakers and electronic firms, pushing unemployment higher.Kathy Lien FX360.COM
May The Force Be With You.
Eddie Azron.