{"id":60831,"date":"2014-09-24T05:10:50","date_gmt":"2014-09-24T09:10:50","guid":{"rendered":"http:\/\/countingpips.com\/?p=60831"},"modified":"2014-09-24T07:14:27","modified_gmt":"2014-09-24T11:14:27","slug":"dollar-stalls-as-yen-supported-by-japanese-pm-comments-on-weak-yen-effects","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/dollar-stalls-as-yen-supported-by-japanese-pm-comments-on-weak-yen-effects\/","title":{"rendered":"Dollar stalls as yen supported by Japanese PM comments on weak yen effects"},"content":{"rendered":"
September 24, 2014<\/div>
\r\n<\/div><\/div>

Article by ForexTime<\/a><\/p>\n

The yen was supported from a further decline on Wednesday after Japanese Prime Minister Shinzo Abe reportedly commented about the economic impact of the Japanese currency\u2019s recent weakness.<\/p>\n

The dollar slipped 0.3 percent on the day to 108.55 yen after Jiji news service quoted Abe as saying he would carefully watch the impact of the yen\u2019s recent weakness on Japanese regional economies.<\/p>\n

Abe\u2019s remarks come just after the yen\u2019s decline to a six-year low of 109.46 yen versus the dollar last Friday, a drop of roughly 7 percent from levels reached in early August.<\/p>\n

It is only natural to see these types of comments given how fast the yen has dropped versus the dollar recently, said Jesper Bargmann, head of trading for Nordea Bank in Singapore.<\/p>\n

\u201cI think it\u2019ll serve the purpose and maybe slow down the move a little bit,\u201d Bargmann said.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

\u201cThey\u2019re certainly not, in my opinion, directed to talk the yen stronger, but more directed at the speed of the move,\u201d he added.<\/p>\n

The yen has weakened against a broadly stronger dollar as investors speculate that U.S. interest rates would rise much before those in Japan or Europe.<\/p>\n

The yen has also been weighed down by speculation that a forthcoming strategy review by Japan\u2019s $1.2 trillion Government Pension Investment Fund (GPIF), which is drawing up plans to increase the weighting of domestic stocks in its portfolio, may also result in an increase in its allocation toward overseas assets.<\/p>\n

Abe\u2019s comments are probably aimed at trying to avoid any criticism related to the yen\u2019s weakness, said Mitul Kotecha, head of FX strategy, Asia-Pacific for Barclays in Singapore.<\/p>\n

\u201cBut ultimately, I don\u2019t think the trend or the tone will change. It appears to me that Japanese officials would still prefer to see yen weakening as long as it\u2019s a gradual drop in the currency,\u201d Kotecha added.<\/p>\n

 <\/p>\n

\n

\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime The yen was supported from a further decline on Wednesday after Japanese Prime Minister Shinzo Abe reportedly commented about the economic impact of the Japanese currency\u2019s recent weakness. The dollar slipped 0.3 percent on the day to 108.55 yen after Jiji news service quoted Abe as saying he would carefully watch the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-60831","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=60831"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60831\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=60831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=60831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=60831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}