Market Report – Japan Eyes Yen Move, Asia Banks Ease

In today’s market report… the dollar remained barely above 10-month lows, as investors trimmed short positions against the dollar for regional currencies.

Japan vowed decisive currency market action on Friday, while South Korea warned that foreign exchange tension could fan protectionism.

Finance Minister Yoshihiko Noda says Japan will act regardless of meetings of the Group of Seven or G20 nations, whose finance officials are set to gather next week.

South Korea, chair of the G20 summit, said the group would sternly deal with trade protectionist moves, noting rising currency market tensions.

Trade imbalances, the falling dollar and pressure on emerging market currencies are set to dominate discussions at the meeting in South Korea.

Japan’s Noda said the decline in the dollar, which hit a 15-year trough against the yen, reflected the U.S. economy and prospects for further monetary easing there.

Traders said a sustained dollar rebound was unlikely, with some Japanese strategists still expecting a record peak for the yen ahead.

Asian share markets mostly shrugged off the currency’s firmness, focusing on a widening U.S. foreclosure crisis, which hit shares of Asian lenders such as Mizuho on Friday.

Foto: NTDTV