Daily Forex News
 
Daily World Currencies News from London
Wednesday 20th of August 2008
February 21, 2007

Japan interest rate hike doesn’t help yen

Story link: Japan interest rate hike doesn’t help yen

Japan interest rate hike doesn't help yen

The Bank of Japan�s decision to raise interest rates to 0.5 percent, announced on Wednesday, did not help the yen gain any ground against global currencies. The Bank voted 8 to 1 to raise the rate by 25 basis points. In its comments accompanying the announcement, the bank said that future raises would be �very gradual�, leading analysts to believe that the rate will stay at 0.5 percent at least until elections in July. Some also said that the Bank�s decision was likely to send investors on another round of yen-financed carry trades.

In mid-afternoon trade in New York, the yen had dropped 0.6 percent to �236.20 in relation to sterling, while it dropped to a new record low of �158.80 versus the euro, a decline of 0.7 percent. The yen was also lower against the US dollar, dropping 0.9 percent to �121.

The greenback was helped by news that the US consumer price index was up more than had been expected in January. The dollar added 0.1 percent to $1.3130 versus the euro, while it gained 0.2 percent against both sterling and the Swiss franc, to $1.9520 and SFr1.2385 versus the Swiss franc.

Sterling dropped 0.1 percent versus the euro to �0.6730 after the minutes of the most recent Bank of England Monetary Policy Committee meeting. The minutes revealed that the committee voted 7 to 2 in favor of holding the UK interest rate at its current level of 5.25 percent.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

Related stories:

No related posts

Latest News:

Yen gains on euro, USD, pound
USD weaker after quick rally
Yen stronger on flight from risk
Pound declines on inflation, house prices
Eurozone rate speculation limits losses for euro
Euro drops 3 percent versus USD this week
Euro weaker after ECB rate decision
Greenback gains ahead of Fed decision
Pound weaker on construction data
Jobs, manufacturing data help greenback

[Most Recent Exchange Rate from www.kitco.com] [Most Recent Exchange Rate from www.kitco.com]
[Most Recent Exchange Rate from www.kitco.com] [Most Recent Exchange Rate from www.kitco.com]
[Most Recent Exchange Rate from www.kitco.com] [Most Recent Exchange Rate from www.kitco.com]
[Most Recent Exchange Rate from www.kitco.com] [Most Recent Exchange Rate from www.kitco.com]
[Most Recent Exchange Rate from www.kitco.com] [Most Recent Exchange Rate from www.kitco.com]
[Most Recent Exchange Rate from www.kitco.com] [Most Recent Exchange Rate from www.kitco.com]