April 2nd 2012, Monami Yui, Allison Bennett & Kristine Aquino, Bloomberg.com
Over the week the Japan Yen slid 10% the last quarter against most of its counterparts, the biggest drop since 1995. A main reason for the JPY staying low is to keep its buyers coming at a satisfactory price, however despite all the efforts, international car manufacturer Toyota said that the Yen needs to be lower to help exports (Yui & Bennett, 2012). According to Toyota, based on last fiscal year’s profit forecast on an exchange rate of 78 yen to the dollar, and says it loses about 32 billion yen in operating income for every 1 yen gain against the greenback (Yui & Bennett, 2012).
In other news, the USD fell against the Australian and New Zealand at 0.8% and 0.4% respectively (Yui & Aquino, 2012). Besides that the Euro remains high against the Dollar as the USD lost 0.1%.
So what is the future of the USD?
“Global PMIs are improving and that’s increasing risk sentiment across the markets,” said Emma Lawson, a Sydney-based currency strategist at National Australia Bank Ltd. (NAB)“Across the board, you’re seeing the U.S. dollar a little bit weaker” (Yui & Aquino, 2012).
I guess we are just gonna have to see. See you all soon.
To view the full articles, go here:
Dollar Declines Versus Peers, Bloomberg.com
Yen Losing Much since '95 Not Enough for Toyota, Bloomberg.com
No comments:
Post a Comment