Thursday, 11 April 2013

Yen Halts Drop Toward 100 on Japan Bond Sale Data; Aussie Falls

By Kevin Buckland & Neal Armstrong - Apr 11, 2013 11:57 AM GMT+0400

The yen halted a decline that took it to within 0.1 percent of 100 per dollar after official data showed Japanese investors sold foreign bonds.
The yen was supported as a technical indicator signaled the currency may pare its 6.6 percent loss against the greenback since the Bank of Japan (8301) expanded monetary easing last week. Australia’s dollar halted a five-day gain versus the yen after the nation’s unemployment rate unexpectedly rose. South Korea’s won appreciated for a third day after the central bank kept its key rate unchanged.
Yen Near 100 on Prospect of Fund Outflow on BOJ Stimulus Plans The yen last touched 130 per dollar in April 2002. It has fallen against all 16 of its major peers this year. Photographer: Yuriko Nakao/Bloomberg
April 11 (Bloomberg) -- Andrew Economos, head of sovereign and institutional strategy for Asia excluding Japan at JPMorgan Asset Management in Hong Kong, talks about Asian stocks. He also discusses the outlook for U.S. stocks, Federal Reserve monetary policy, and the threats from North Korea. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
April 10 (Bloomberg) -- Tohru Sasaki, Tokyo-based head of Japan rates and currency research at JPMorgan Chase & Co., talks about central bank monetary policy, the yen, and government bonds. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
April 10 (Bloomberg) -- Brian Jackson, a strategist at Coutts & Co. in Hong Kong, talks about the yen and Bank of Japan monetary policy. He also discusses the outlook for the euro, the pound and the Australian dollar. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move." (Source: Bloomberg)
April 10 (Bloomberg) -- Jonathan Beinner of Goldman Sachs talks about global credit markets, investment strategy and the outlook for the yen. He speaks with Erik Schatzker and Stephanie Ruhle on Bloomberg Television's "Market Makers." (Source: Bloomberg)
“It is quite a surprise to see that Japanese investors were net sellers of foreign bonds,” Sebastien Galy, a foreign- exchange strategist at Societe Generale SA in New York, said in an e-mailed response to questions. “The yen’s gains today could be a factor of that negative surprise.”
The yen gained 0.1 percent to 99.65 per dollar at 8:53 a.m. inLondon after yesterday touching 99.88, the weakest since April 14, 2009. Japan’s currency was little changed at 130.30 per euro after yesterday reaching 130.54, the least since January 2010. The euro was little changed at $1.3078.
Japanese investors were net sellers of foreign debt in the week ended April 5, according to data released by the Ministry of Finance today. They offloaded 1.14 trillion yen in overseas bonds and notes, purchased 6.3 billion yen in overseas stocks and bought 75.5 billion yen in overseas short-term securities.

BOJ Decision

Haruhiko Kuroda said yesterday the unprecedented stimulus announced on April 4 after his first meeting as BOJ governor is enough to achieve a 2 percent inflation goal.
The central bank has taken all “necessary” and “possible” measures, Kuroda told reporters in Tokyo. While officials will change policy as needed, he doesn’t expect adjustments each month, he said. The BOJ chief reiterated a pledge to do what’s needed to meet the price target in two years.
The 14-day relative strength index of the yen versus the dollar posted its fourth day below 30, level that some traders use as a signal that an asset’s value has fallen too far, too fast. Versus the euro, the yen’s RSI was at 28.
“There’s certainly some interest in the market to take profit on short yen positions, which is providing pause in the general yen depreciation trend,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington.

Australia Jobs

Japan’s currency has dropped 4.5 percent in the past week, the worst performance among 10 developed nation currencies tracked by Bloomberg Correlation Weighted Indexes.
The statistics bureau in Sydney said Australia’s jobless rate rose to 5.6 percent, the highest since November 2009, as employers cut 36,100 jobs in March. Economists surveyed byBloomberg News had predicted the jobless rate would remain unchanged at 5.4 percent.
“We’ll probably see weakness on the crosses for the next couple of days, as the view on a recovery in the Australian labor market remains challenged, and also the RBA retains its easing bias,” said Andrew Salter, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. (ANZ), referring to Australia’s dollar against its peers.
The so-called Aussie was little changed at 105.179 yen and traded at $1.0558 after yesterday touching $1.0552, the most since Jan. 24.
To contact the reporters on this story: Kevin Buckland in Tokyo at; Neal Armstrong in London at
To contact the editor responsible for this story: Rocky Swift at