Forex Asia Review ? Yen weakens after record high Japan deficit

Home > All > Forex Asia Review ? Yen weakens after record high Japan deficit

Posted on March 8, 2012 by Trading Point Investment Research Desk at 7:18 am GMT

The yen weakened against the dollar and most of its major counterparts after data showed Japan posted a record current-account deficit of 437.3 billion yen. The yen fell to the weakest level against the dollar since May 26 last year. USDJPY opened in Asia at 81.07 and rose to 81.38.

The Australian dollar dipped briefly before recovering after a weak jobs report raised speculation of a rate cut. Australian employment suffered an unexpected drop of 15,400 in February, bringing the unemployment rate to 5.2 percent. AUDUSD fell after the data to 1.0532 before bouncing up to 1.0619, buoyed by a pick up in market sentiment ahead of the Greek PSI today.

The euro advanced against the U.S. dollar on reports that Greece found more support for its debt restructuring efforts, after a group of major banks and funds said they would take part in the PSI debt swap. The German Finance Minister ?said he is quite optimistic that the private-sector involvement in the debt swap will succeed.

Euro was lifted to a high of 1.3182 versus a low of 1.3095 yesterday. Euro also climbed against the yen during the Asian trading session. EURJPY peaked at 107.24 from a 106.60 session open level.

Risk sentiment was also boosted after data late on Wednesday showed U.S. job creation in the private sector increased in February. ?The news of an improving US labour market bolstered risk currencies and global exchanges ahead of the all-important U.S. non-farm payroll jobs figures on Friday.

Source: http://www.trading-point.com/forex-asia-review-yen-weakens-after-record-high-japan-deficit-6807

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