The yen advanced on Monday after economy minister Akira Amari said over the weekend that the value of the yen had been corrected. But on Tuesday the official with the globe's third-biggest economy would not say when the monetary unit would stop losing value and proving to be harmful to Japanese society.
"The weekend comments were misread. He didn't say it in the way it was reported in English," a Japanese market participant told Reuters on Tuesday. "But the recent strength (of the dollar) is faster than expected, that's why I think they're trying to bring it down a bit, but the basic stance is that they prefer to maintain a weakening policy in the long term."
The Japanese yen surged 0.9 percent on Monday against the U.S. dollar, marking its biggest advance since April 26.
Reuters reports a survey it administered revealed about 50 percent of companies in the Pacific Rim nation said the monetary unit has lost enough of its value.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.