The yen posted its first weekly decline against the dollar in two months as Japan’s inflation slowed and industrial production slumped, adding to bets the central bank will pump cash into the economy at a faster pace.
Japan’s currency depreciated for a third week versus the euro as Bank of Japan policy board member Hidetoshi Kamezaki said officials may consider “extraordinary steps” to improve access to funding for companies. The dollar fell for a fifth week against the euro as reports showed U.S. holiday-season spending declined.
“The economic outlook for Japan remains dark,” said Gareth Sylvester, senior currency strategist in San Francisco at HiFX Plc, a U.K.-based foreign-exchange brokerage firm, in an interview on Bloomberg Television. “That should be reflected in yen weakness.”
Japan’s currency fell 0.5 percent to 90.81 per dollar at 4:54 p.m. in New York, from 90.38 yesterday. It slid to 90.99 on Dec. 23, the weakest level since Dec. 15. The yen may decline to 92 per dollar in three weeks before strengthening to 85 in the first quarter of 2009, according to Sylvester. The yen fell 0.6 percent to 127.40 per euro from 126.67. The euro was little changed at $1.4023 from $1.4025.
The ruble declined to a record against the euro as Russia’s central bank extended devaluation to compensate for falling crude oil prices. The ruble dropped as much as 1.6 percent to 40.8931 per euro, the weakest level since the European currency was introduced in 1999. It touched a four-year low of 29.0577 against the dollar, dropping 19 percent since early August.
From Bloomberg News.
Japan’s currency depreciated for a third week versus the euro as Bank of Japan policy board member Hidetoshi Kamezaki said officials may consider “extraordinary steps” to improve access to funding for companies. The dollar fell for a fifth week against the euro as reports showed U.S. holiday-season spending declined.
“The economic outlook for Japan remains dark,” said Gareth Sylvester, senior currency strategist in San Francisco at HiFX Plc, a U.K.-based foreign-exchange brokerage firm, in an interview on Bloomberg Television. “That should be reflected in yen weakness.”
Japan’s currency fell 0.5 percent to 90.81 per dollar at 4:54 p.m. in New York, from 90.38 yesterday. It slid to 90.99 on Dec. 23, the weakest level since Dec. 15. The yen may decline to 92 per dollar in three weeks before strengthening to 85 in the first quarter of 2009, according to Sylvester. The yen fell 0.6 percent to 127.40 per euro from 126.67. The euro was little changed at $1.4023 from $1.4025.
The ruble declined to a record against the euro as Russia’s central bank extended devaluation to compensate for falling crude oil prices. The ruble dropped as much as 1.6 percent to 40.8931 per euro, the weakest level since the European currency was introduced in 1999. It touched a four-year low of 29.0577 against the dollar, dropping 19 percent since early August.
From Bloomberg News.