Greenback struggles against yen
During Wednesday’s Asia trade the evergreen buck headed south against its Japanese rival. It was caused by unexpectedly positive Japanese economic growth figures, understating traders’ hopes for further easing.
The US dollar went as low as ¥108.73 before rebounding to ¥109.26, compared to Tuesday’s outcome of ¥109.16 in New York.
Early in the session, the major American currency was going down following Japan’s positive GDP data for the period Janurary-March. That heavily hurt hopes that Japan’s authorities would implement new fiscal as well as monetary measures.
However, the evergreen buck trimmed its early losses and suddenly turned upwards with Japanese shares rebounding late in the morning, helping traders to sell the safety of Japan’s currency. Meanwhile, the Nikkei Stock Average stood still after its recent 0.9% surge.
Currently, financial analysts are witnessing sincere hopes for the BOJ’s easing and it brings the greenback down in the session. As for the greenback’s downside support, it looks solid enough. Most analysts don’t expect the US dollar to sink further against the yen.