Yen rises across the board

The yen rose across the board on Monday after the Bank of Japan announced aggressive monetary easing measures to halt the yen's appreciation in an emergency meeting because he preferred a program only to expand the money supply.
Investors understand the measures as a symbolic gesture that will do little to stem the currency's rally, moving the pressure the Japanese government, for this act if the yen continues to rise.
Japan's currency touched an intraday high against the dollar and euro after the Bank of Japan governor, Masaaki Shirakawa, said after meeting with Prime Minister Naoto Kan that had not made any requests regarding the bank's monetary policy centralHe also declined to comment on recent exchange rate movements, following the escalation of the yen to 15-year highs against the dollar and a ceiling of nine years against the euro reached last week, which some investors took as a green light to continue buying yen.

Yen rises

"At the end of the day, extending the loan program and economic measures are too timid to produce a dramatic reversal in the rise of the yen," said Roberto Mialich, currency strategist at Unicredit in Milan.
Kan said the government will implement measures to help the economy using its reserves budget of 920,000 million yen.
Earlier, Shirakawa said that the monetary policy measures will be tied to the movement of the yen and stock markets, and that the Japanese currency's rally was due to risk aversion.

The extent of the Bank of Japan official comments encouraged investors to bet on long positions in yen, and that the comments were seen as a sign that Japan's foreign exchange intervention is not imminent.
At 1032 GMT, the dollar fell 0.7 percent on the day at least the day of 84.62 yen according to Reuters data. The dollar sank from the roof of the meeting at around 85.90 yen before Japan's central bank announced its decision.

Yen Japan`s currency

"People are betting on new short positions in the dollar / yen, after having reduced their long exposure before the meeting," said Niels Christensen, senior currency strategist at Nordea in Copenhagen.A trader in London said stop loss orders to sell dollars under the 84.90 yen accelerated the fall of the dollar.
The euro fell to about 1 percent to around 107.50 yen. The single currency lost 0.4 percent against the dollar, 1.2700.Apart from the yen exchange movements in Europe had limited due to closure of markets in London for a holiday.
Against a basket of currencies, the dollar slipped 0.1 percent to 82.842, while the dollars of Australia and New Zealand operated little changed against the dollar.

Yen falls from highs vs dollar Japanese intervention rumors

The yen fell on Wednesday of 15-year highs against the dollar due to speculation that the Japanese authorities may for the first time in over six years to take measures to curb currency appreciation.Japan's economy struggles to recover from the effects of global recession and a rising yen remove export competitiveness, a motor of the economy.
The euro rebounded from a minimum of nine years against the yen after a rise in German business confidence, while the dollar remained under pressure after learning a weaker-than-expected durable goods orders and a U.S. plunge in new home sales.
Investors were reluctant during the session to continue betting on a rise in the yen after Japanese Finance Minister, Yoshihiko Noda, reiterated that the government would react to the movements of the yen as it deems necessary.

Yen fall vs. Dollar

The caution in the market to the yen started on Tuesday when the Nikkei business daily reported that Japan's Finance Ministry would consider unilateral sales of yen if speculators were driving the currency to rise.
"Nothing in politics or the economy justifies the strong Japanese yen. It is merely a case of fear in world markets," said Joseph Trevisani, FX Solutions analyst in Saddle River, New Jersey.Analysts said that statements by Noda offered a chance for investors to give a truce to the escalation of the yen fall.

On the evening of New York, the dollar rose 0.8 percent against the yen at 84.63 yen, but remained near its 15-year low of 83.60 struck on Tuesday.
"The yen has gone far enough fast enough, so we're seeing some consolidation," said Daragh Maher, a strategist at Credit Agricole CIB.
However, the demand for dollars fell after news that durable goods orders in the U.S. rose less than expected in July and that excluding transportation orders suffered their worst drop since January 2009.
"It adds to the series of figures weaker than expected. The risk of entering a growth period of very, very weak, has increased," said Matthew Strauss, strategist at RBC Capital Markets in Toronto.A report showing a collapse in sales of new U.S. homes in July further reduced the demand for dollars.
The euro rose 0.9 percent against the yen at 107.05 yen on Tuesday after touching a minimum of nine years of 105.44.Analysts said the impact of a rise in German business confidence to its highest level in three years was tempered by concerns about the fiscal situation of the euro area, reflected in a widening of spreads between the Irish and German bonds.Standard & Poor's downgraded the credit rating Tuesday of Ireland in a step to "AA-" and warned that the outlook of the country remains negative.
Against the dollar, the euro gained 0.2 percent to $ 1.2651.