Yen drops to 2-year low against dollar



Reuters

Published — Thursday 27 December 2012

Last update 27 December 2012 2:25 am

| نسخة PDF Print News | A A

NEW YORK/TOKYO: The yen fell to a two-year low against the dollar yesterday after Japan swore in a new prime minister who has called for weakening the currency to stimulate inflation, while US stocks slipped in thin trading.
The dollar rose as high as 85.74 yen on trading platform EBS, the highest since September 2010, following the swearing-in of Shinzo Abe as premier and was last at 85.65. The euro rose as high as 113.40 yen, a 16-month high, up 1.4 percent. The euro was at $1.3223 against the dollar, up 0.3 percent.
Abe is calling for a mix of aggressive monetary policy easing and big fiscal spending to beat deflation and weaken the yen. He is pressuring the Bank of Japan to adopt a 2 percent inflation target that would auger for a weaker currency, threatening changes at the central bank if his wishes are not met.
"The election of Abe has had a galvanizing effect on the dollar/yen exchange rate and he has been able to accomplish more in two months of jawboning than the BoJ has... over the past several years," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.
US shares were slightly lower in post-Christmas trading, picking up from losses on Monday, as Congress looks likely to fail to negotiate a deal to avoid the "fiscal cliff," a series of $ 600 billion in spending cuts and tax hikes that would slow the US economy sharply unless lawmakers take action.
US stocks have held in a tight range, recovering losses sustained just after the US election in November. The S&P 500 is still up about 13 percent on the year.
The Dow Jones Industrial Average dropped 53.68 points, or 0.41 percent, at 13,085.40. The Standard & Poor's 500 Index was down 9.13 points, or 0.64 percent, at 1,417.53. The Nasdaq Composite Index was down 27.69 points, or 0.92 percent, at 2,984.91.
Many markets remained closed following Christmas. European exchanges were largely shuttered, and Hong Kong and Australia were also closed. The MSCI All-World Index was down 0.15 percent on Wednesday.
Brent crude climbed above $110 per barrel yesterday, hitting a two-month high, with investors hoping for a last-minute deal to avoid a U.S. fiscal crisis. US crude futures gained $2.30, or 2.6 percent, to $90.91.
The weaker yen has bolstered hopes for better earnings from Japanese companies and underpinned the Nikkei, which has gained about 18 percent since mid-November, when the election was scheduled. The yen has lost nearly 8 percent against the dollar in the same period.
The Nikkei closed at a nine-month high yesterday, with a 1.5 percent gain.
Minutes of the BOJ's policy-setting meeting in November, released yesterday, showed that some board members said the central bank must act decisively, without ruling out any policy options, if the outlook for the economy and prices worsens further.
MSCI's broadest index of Asia-Pacific shares outside Japan was little changed. Shanghai shares were flat, but stayed in positive territory on the year after a 2.5 percent jump on Tuesday erased 2012 losses. It is set for a first annual gain in three years.

What's happening around Saudi Arabia

SYDNEY: Amnesty International has demanded that Mustafa Al-Hosawi, a Saudi prisoner at Guantanamo Bay in Cuba, be treated for the torture he underwent at the hands of the CIA.The US branch of the organization sent a message to health officials at the...
JEDDAH: The city’s airport staff saved a 20-year-old woman who tried to throw herself from the upper floor to the mezzanine floor in the southern hall. Sources said the suicide attempt was due to family disputes. Administrators said a supervisor in t...
RIYADH: Education Minister Ahmad Al-Issa has ordered to gradually close down private night schools beginning from the current year. The closure of these schools will be complete by 1439H.Al-Issa’s decision is based on reports of a body, which highlig...
RIYADH: A cross-section of Saudi society on Friday denounced the Jazan massacre that shook the nation on Thursday, when a gunman went on the rampage killing seven education officials and injuring several others in Al-Dair governorate.The culprit, ide...
JEDDAH: Maj. Gen. Awad Al-Balawi, head of the Saudi Border Guard, recently confirmed the expansion of the employment program for women within the border security sector. He said that the sector is entering a new phase as women will be employed in a n...
RIYADH: A medical team of the King Abdullah Specialist Children’s Hospital (KASCH) at the King Abdulaziz Medical City (National Guard) here have successfully conducted the first liver transplant on a baby boy. Fahad Mari Said Al-Sairdh, father of the...
JEDDAH: The Makkah Investigation and Prosecution Board reintroduced the crane crash incident to the Riyadh Investigation and Prosecution Board recently, adding 10 more employees and supervisors from different government agencies before the courts. Th...
JEDDAH: The teacher who gunned down seven education officials in Al-Dair governorate on Thursday had been showing behavioral problems in recent days, Al-Janob Misfer Al-Subhan, director of King Faisal Secondary School in Dharan, was quoted as saying...
JEDDAH: The Human Rights Commission (HRC) is investigating the Nakheel Mall case, in which a girl was beaten up by a group of Haia members, an official of the commission has said. “The HRC is supposed to guarantee the rights of those harmed, whoever...
AL-AHSA: King Faisal University (KFU) in Al-Ahsa is currently studying the possibility of admitting female students to specialize in veterinary medicine, the director of the university, Dr. Abdulaziz Al-Saati, confirmed. He said the matter has been p...
JEDDAH: A fingerprinting campaign, titled “Imprint Homeland,” against extremism and terrorism, was launched at the Jeddah corniche on Thursday night. The drive will cover all the 17 regions of Makkah province.The campaign, initiated by the Makkah gov...
RIYADH: The number of unemployed Saudi nationals reached 647,000 by the end of last year, of whom 56 percent, or 363,800, hold bachelor’s degrees or licenses. Female bachelor’s degree and license holders accounted for three-fourths of unemployed Saud...
RIYADH: Four citizens have been arrested in two murder cases, one of which was a road rage. One of the suspects resisted arrest and even opened fire on the police, but no one was injured.According to the Riyadh police, a clinic informed them that it...
MAKKAH: Thirty percent of male middle school students and 23 percent of female students take some form of drugs, a recent scientific study from the National Center for Youth Research confirmed. The study shows drug consumption rates among students in...
RIYADH: Several government departments participating in a campaign to fight breast cancer in the Eastern Province will offer their recommendations to the Ministry of the Interior to include breast cancer checks for women aged 40 and above as part of...

Stay Connected

Facebook