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Ash4781

Yen Record After Boj Move May Encourage Japan To Aid Europe

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http://www.businessweek.com/news/2011-10-28/yen-record-after-boj-move-may-encourage-japan-to-aid-europe.html

Oct. 28 (Bloomberg) -- Aiding Europe may be Japan’s best bet for weakening the yen after an expansion of central-bank stimulus yesterday failed to stop the currency from advancing to another postwar high.

The Bank of Japan added 5 trillion yen ($66 billion) to an asset-purchase program after Europe announced an enlarged rescue fund to counter the region’s debt crisis. JPMorgan Chase & Co. and Morgan Stanley MUFG Securities Co. said the central bank’s measure was too little. The yen traded at 75.84 per dollar as of 12:35 p.m. local time today after rising to 75.66 yesterday.

Nintendo predicts first annual loss on yen woes, 3DS disappointment

http://www.japantimes.co.jp/text/nb20111029n2.html

Strong Yen Hits Mitsubishi Motors, Daihatsu

http://online.wsj.com/article/SB10001424052970203554104577003453802423154.html

Looks like next week will be busy with dollar yen already touching records. I'm not sure I fully understand this but I presume they [Japan] don't have a choice they have to join in with the rescue and buy into the fund because they are finding that they can't weaken their currency.

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http://www.businessweek.com/news/2011-10-28/yen-record-after-boj-move-may-encourage-japan-to-aid-europe.html

Nintendo predicts first annual loss on yen woes, 3DS disappointment

http://www.japantimes.co.jp/text/nb20111029n2.html

Strong Yen Hits Mitsubishi Motors, Daihatsu

http://online.wsj.com/article/SB10001424052970203554104577003453802423154.html

Looks like next week will be busy with dollar yen already touching records. I'm not sure I fully understand this but I presume they [Japan] don't have a choice they have to join in with the rescue and buy into the fund because they are finding that they can't weaken their currency.

Maybe they should do with money what they used to do with surplus rice....bung it in the sea.

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yeh why not! sod all else has worked

their printy printy machine operates in much the same way anyway.

I like the idea of European politicians...you really could not make it up-re China

When Pete Tongue pays a visit, do they honestly think the Chinese will just sit by and watch it happen like the pitiful Germans?

Do they really think that because the Chinese will own our hides, they won't want a war....the assets mean nothing.

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http://uk.reuters.com/article/2011/10/31/markets-forex-idUKN1E7961H120111031

A large intervention moved the market.

Intra-day http://www.bbc.co.uk/news/business/market_data/currency/12/14/intraday.stm

However it did move back lol....

The options market showed bets on the yen's gains against

the dollar on a one-month horizon had not eased significantly,

reflecting the market's belief that the impact of intervention

would not last more than around two to three weeks.

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Crazy European politicians decide to save the European project by selling the Continent to Asia

They have gone stark staring bonkers.

All they are selling are IOUs from already-bankrupt countries. As assets go, there are better ones.

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http://online.wsj.com/article/BT-CO-20111031-717734.html

NEW YORK (Dow Jones)--The euro experienced its biggest single-day percentage drop against the dollar in more than a year, as jitters about the euro-zone sovereign debt crisis resurfaced.

The currency has given back all of its gains since Thursday, when European leaders announced a plan to stabilize the region's financial system. The agreement aims to boost the euro-zone bailout fund's firepower, cut Greece's debt load and recapitalize the region's banks.

...Adding to the euro's woes was a massive intervention by the Japanese government to weaken the Japanese yen. Japan spent an estimated Y7 trillion, about $90 billion, to cap a rise in the yen that has undermined the economy and made exports less competitive abroad. That gave the dollar a boost against the yen, rising to Y78.17 from Y75.83. The euro was at Y108.34 from Y107.29.

The dollar and the yen have been among the favored safe-haven currencies in recent market volatility. But the threat of further intervention in the yen leaves the dollar as the currency of choice in times of risk aversion, giving it additional momentum against the euro and other growth-sensitive currencies.

7 Trillion yen intervention was the estimate !

edit: still though seems like swimming against the tide.

Edited by Ash4781

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http://online.wsj.com/article/BT-CO-20111031-717734.html

7 Trillion yen intervention was the estimate !

So wait a minute, Japan (and China) were supposed to invest in the bailout fund which has now disappeared. The 7 trillion is also likely to vanish by the end of the week with the Yen falling back to 122 (to the Gbp) by friday. Is this pure comedy gold or what?

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So wait a minute, Japan (and China) were supposed to invest in the bailout fund which has now disappeared. The 7 trillion is also likely to vanish by the end of the week with the Yen falling back to 122 (to the Gbp) by friday. Is this pure comedy gold or what?

Yeah. Though does seem to be holding http://finance.yahoo.com/q/bc?s=JPY=X&t=5d&l=on&z=l&q=l&c=

Interesting that companies are indicating that they want to offshore production from Japan.

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Yeah. Though does seem to be holding http://finance.yahoo.com/q/bc?s=JPY=X&t=5d&l=on&z=l&q=l&c=

Interesting that companies are indicating that they want to offshore production from Japan.

Yes, the $ and Gbp chart are identical.But it's still only around 2% higher than last Friday. I seem to remember that after intervention last spring the Yen fell by around 5%....before climbing back to previous highs 3 weeks later.

Offshoring can also bring problems. Thailand!!

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Yes it held up a few days longer against the Pound than I thought. It's back at 121 level so from 122 to 125 and now back to where it was before intervention.

You don't get much for 7 trillion Yen these days....maybe next time they should try farmland. How about Dakota?

Edited by council dweller

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http://online.wsj.com/article/SB10001424052970204630904577059670677263162.html?mod=googlenews_wsj

TOKYO—The Bank of Japan has sent a questionnaire to major banks asking whether they can help it intervene in currency markets overseas—a move seen as a "new front" in the central bank's campaign against the strong yen.

The central bank has been polling financial institutions in Tokyo for about the past two weeks, both in writing and verbally, according to people familiar with the matter.

The brief survey asks several questions about how the bank can help the BOJ with its intervention, which is carried out under the control of the Ministry of Finance.

Market participants say the survey represents a new tactic to rein in the yen. Some see it as a way to find out if the central bank can undertake "secret" intervention during European or North American trading hours.

Currency wars.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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