Kan Keeps PM Job, but Yen Still Hovering Near 15−Year High
International Trading
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Tuesday, September 14, 2010
, Posted by Usman Ali Minhas at 8:34 AM
Overnight the U.S. Dollar reached a new 15-year low versus the Japanese Yen on uncertainty regarding a leadership election in Japan. At issue was whether the current Prime Minister Kan would keep his job or not. Kan has been a staunch supporter of intervention. When it was all over, Kan was able to keep his job, but the December Japanese Yen has barely backed down from its overnight high at 1.2048.
The inability to break the Japanese Yen shows a lack of confidence in the government and the Bank of Japan’s ability to pull off a successful intervention. By taking the Yen to a new high, investors are saying the country’s leaders lack the clarity and conviction to weaken the currency.
The Dollar is trading better against most majors with the exception of the Japanese Yen, indicating that traders may take risk off the table today after yesterday’s strong demand for risky assets driven rally.
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