Forex
By Bob
Here's soemthing for people working in the International Money & finance field to read:
Jan. 29 (Bloomberg) -- The yen declined to the lowest against the dollar in more than four years after a Japanese government report showed a drop in retail sales last month.I thought the dollar was collapsing it is was the result of the CA deficit?The yen also weakened against the euro, pound and Swiss franc on concern waning spending will encourage the Bank of Japan to delay raising interest rates. Barclays Capital, Standard Chartered Bank Plc and RBC Capital Markets dropped forecasts for a 2007 yen gain last week after policy makers kept borrowing costs at 0.25 percent on Jan. 18.
``Low interest rates in Japan are encouraging people to move money out of the country,'' said Adnan Akant, head of foreign exchange in New York at money manager Fischer Francis Trees & Watts, which has $42 billion in assets. ``There is no dramatic economic activity in Japan right now, making it hard for the BOJ to raise interest rates.''
Japan's currency fell to 121.94 per dollar at 2:41 p.m. in New York from 121.54 on Jan. 26. It touched 122.19, the weakest since 122.85 on Dec. 13, 2002. It also fell to 157.96 per euro from 156.99, approaching its record low of 158.62 set on Jan. 24.
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