Global Newsbrokers Forex Service
Tokyo close at 07:28:01
DOLLAR WEAK BUT STABILISES IN TOKYO
Thursday, January 13
The dollar remained weak in Tokyo
overnight in the wake of yesterday's
poor US trade data, but the US
currency did manage to stabilise with
the help of Japanese importer buying.
Nevertheless, more dollar losses are
anticipated, with sell orders seen at
Y102 which, if triggered, could lead
to an accelerated decline.
The trade figures shone a brighter
spotlight on US deficit factors and
coincided with this week's comments
from the ECB's Otmar Issing that Asian
currencies should be allowed to
appreciate.
Add to this comments from US Treasury
Secretary Snow that faster growth is
needed in the euro-zone and Japan to
help boost US exports, and a clearer
picture starts emerging of the
pressures in the market for a weaker
dollar.
The snag is of course that stronger
currencies will affect the euro-zone
and Japanese export sectors, capping
overall economic growth in those
areas.
In late Tokyo trade, the dollar was
standing at Y102.31.
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