Filed under: International markets, Other issues, Federal Reserve

Stung by near-record oil prices, a large trade deficit, a federal budget deficit, sluggish economic growth, and inadequate domestic savings, the U.S. dollar has taken a beating in foreign exchange markets versus the world’s other major currencies (euro, British pound, Swiss franc, yen).

Further, the dollar, which has fallen about 10% versus Japan’s yen since January 2006, is now approaching levels that may draw the attention of more than just currency traders. The dollar traded Monday afternoon at about 108.96 yen, up 0.36 yen.

Traders eye BOJ

Independent currency trader Andrew Resnick told Bloggingstocks that the currency markets are beginning to sense that the strengthening yen versus the dollar may draw the attention of the Bank of Japan, Japan’s central bank. A strengthening currency can make that nation’s investments more-attractive to investors, but it also makes that nation’s exports more expensive - - if exporters increase prices to compensate for the counter currency’s reduced buying power.

Continue reading As dollar falls vs. the yen, traders eye Bank of Japan

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This entry was posted on Tuesday, January 8th, 2008 at 7:54 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.