Forex Market Update: Yen Slips Against Dollar and the Euro

The Japanese yen fell against the dollar, hitting a 33-month low, in early trading on Monday. The Japanese currency also fell against the euro on Monday.

The yen slipped following reports that the Japanese government will nominate Haruhiko Kuroda for the post of Bank of Japan (BOJ) governor. Media reports also suggested that the government will nominate Kikuo Iwata as for the post of deputy governors. Both, Kuroda and Iwata are strong supporters of aggressive monetary policy.

Speaking to Reuters, Neil Mellor, Currency Strategist at Bank of New York Mellon, said that dollar/yen has moved on the back of talk that Kuroda is going to head up the BOJ and he is going to be inclined to crank up the printing presses.

Lee Hardman, Currency Economist at Bank of Tokyo Mitsubishi, told Reuters that both these candidates are in favor of more aggressive BOJ easing and that is weighing upon the yen.

In early trading on Monday, the dollar was up 0.5% to 93.85 yen. Earlier in the day, the greenback hit a 33-month high of 94.77 yen.

The euro also gained against the yen in early trading. At last check, the single currency was up 1% to 124.44 against the yen. Earlier in the day, it rose to 125.36 yen.

The euro also strengthened against the dollar and the British pound following a successful Italian bond auction. However, traders are expected to remain cautious as they wait for the Italian election results. A favorable outcome in the Italian elections could boost the single currency.

At last check, the euro was up 0.6% to 1.3269 against the dollar. On Friday, the single currency had hit a six-week low against the dollar. The euro rose 1.2% against the British pound. The pound has come under pressure after ratings agency Moody’s lowered Britain’s credit rating by one notch. The pound fell to a 31-month low against the U.S. dollar.

More Posts by this author

• Market Update After Hours February 26
• Stocks End Higher on Bernanke Comments, Upbeat Economic Data
• Forex Market Update: Dollar Gains Against Euro and Yen
• Gold Prices Settle Higher after Bernanke Comments; Silver Prices Rise Sharply
• Stocks Rebound after Monday’s Sell-Off
• Saks Reports Q4 Results (SKS)
• Forex Market Update: Dollar Gains after Economic Data

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.