Forex Trading, Forex Trading Strategies, Forex Rates, International Trade

Go Finance Reporting in NEW YORK – The yen currency dropped sharply after touching its highest level four months ago on Monday. This happened after the Bank of Japan to take extraordinary steps to support the economy after the devastating earthquake and tsunami.

Reporting from the Associated Press, Tuesday (03/15/2011), Japan’s central bank to print a new record by injecting funds amounting to 15 trillion yen into the financial markets to keep credit flowing in the economy remain. This was done to boost the production of an asset purchase program at 50-40 trillion yen.

Support is intended to raise the stock price, while the large supply of the yen helped to reduce the value of the currency. As for the yen against the dollar rose approximately 14 percent in the last 12 months, so have pressed the profitability of Japanese exporters and Japanese economic burden.

The crisis in Japan has made the yen rose sharply, in which investors hope the Japanese society and insurance companies buying back their local currencies to fund the reconstruction of the country, thus increasing the demand for yen.

Known, on Monday the dollar against the yen was recorded 81.65, down from last weekend’s trade 81.88 per USD. In overnight trading, the dollar reached its lowest point at 80.64. This figure is the lowest level since early November, right after World War II that struck in 1995, which touched a low level of 79.75 per USD.

Analysts said that with this crisis, keeping the Japanese currency demand is higher. After another major quake in Japan, in 1995, the yen sinkhole approximately 20 per cent against the U.S. dollar in three months. (GoFinance)

Related forex articles:

1. ::Follow Yen, Firmer rupiah to Rp8.771/USD>> Go Finance Reporting JAKARTA – The rupiah strengthened against the dollar this time the United States (USA) trailed the value of a strong yen. In contrast, the U.S. dollar looks...
2. ::Nikkei down, Yen Stronger to its highest position>> Go Finance Reporting in TOKYO – After experiencing the gain, the stock market in Japan back to weaken because the threat of nuclear crisis. Nikkei 225 index opened down 4.1...
3. Currency Strategists: Deutsche Bank Says to Buy Yen on BOJ Move June 12 (Bloomberg) — The yen will rise to its strongest since January 2005 in the next six months on prospects the Bank of Japan will boost borrowing costs at...
4. ::Japan Trade Surplus Rp738 Trillion>> Go Finance Reporting Tokyo – Japan’s trade surplus during 2010 more than doubled, marked the growth of exports to 24.4 percent. It’s a signal the rise of Japan after three...
5. ::Japan Disaster, Losses Reaches USD300 Billion>> Go Finance Reporting in TOKYO – Japan’s economic newspaper, Nihon Keizai Shimbun said the government estimates that economic losses from Japan’s earthquake and tsunami could exceed USD300 billion. Reporting from...