Monday, 28 September 2009

Japan Fin Min Fujii: Desirable If Forex Rates Stable

Mon, Sep 28 2009, 05:14 GMT
http://www.djnewswires.com/eu

Japan Fin Min Fujii: Desirable If Forex Rates Stable

TOKYO -(Dow Jones)- Japanese Finance Minister Hirohisa Fujii Monday adjusted his pro-strong-yen comments from earlier in the day, saying the currency's recent rise is slightly "one-sided" and that it is desirable for foreign exchange rates to stay stable.

"The temporary movements (in the yen against the dollar) at present are a little one-sided," Fujii said at a seminar in Tokyo. "Prime Minister (Yukio) Hatoyama said in Pittsburgh that it's desirable if foreign exchange rates are stable, and I feel absolutely the same," he added.

Fujii also said that although he voiced opposition to nations devaluing their currencies to lift exports, he did not mean to signal support for a further rise in the yen.

Fujii's comments suggest that while he has little intention to intervene in markets to curb a strengthening yen, he doesn't want to unnecessarily fuel speculation and encourage dealers to push the currency higher to the detriment of Japan's export-led economy.

-By Takashi Nakamichi, Dow Jones Newswires; 813-6895-7558; takashi.nakamichi@dowjones.com

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(END) Dow Jones Newswires

September 28, 2009 01:14 ET (05:14 GMT)


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Asian Forex Wrap


Mon, Sep 28 2009, 04:32 GMT
http://www.forexlive.com

Merkel to form Center-Right Coalition. EURUSD trades up to 1.4720 on the back of the Merkel victory. RBA says downturn in Australia "mild", interest rates to move higher. Japan Finance Minister, Fujii, says recent FX moves normal. Accelerates USDJPY sell off. NDRC: Confident China can overcome economic crisis. Nikkei smashed down thru 10,000. Gold lower at 988.50. Fujii Backtracks, says currency moves becoming one sided in favour of a rising Yen. Prefers stable currency moves. USDJPY pops up above 89.30 on the comments. Probably the busiest days so far in USDJPY seen in Asia. It was a wild and volatile day which started with the EURUSD taking out stops above 1.4700 for a run to 1.4720 on the back of the Merkel win, only to end up over 100 points lower soon after. USDJPY started steadily but with comments from the new Japanese government implying that they will not intervene in the FX market, the sell off was soon under way. It fell away thru the much talked about bids at 89.50 like a knife thru butter. Stops were hit all the way down before eventually pulling up at 88.20. Support came via importer bids and profit takers which saw USDJPY rebound back above 89.00 and continue higher with backtracking comments from Fujii saying that the FX moves were one sided in favour of arising Yen. Yen crosses also suffered, GBPJPY the most volatile, falling from 143.15 to 139.70 at one stage, before recovering to above 141.40. EURJPY followed the USDJPY lower trading under 130.00, but found support from importer bids into the Tokyo fix, helping it recover back above 130.50 in the afternoon. It found no support via the EURUSD though, it collapsing down thru Sovereign bids at 1.4620 and taking out stops under 1.4600 and 1.4580. Notable sellers towards 9300 in EURGBP also added to its fall. AUDUSD found some early morning resilience via hawkish RBA comments but was no match for the sell off in AUDJPY, pushing the AUD back below 86c, in what turned out to be a 100 pip range trading day. Ranges: EURUSD 1.4559 - 1.4720 GBPUSD 1.5768 - 1.5972 USDJPY 88.22 - 89.65 EURJPY 129.80 - 131.81 AUDUSD 8582 - 8682 Goodluck, Sam


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