The Japanese yen on Tuesday lost value against the world's reserve currency after commentary by U.S. Federal Reserve chief Janet Yellen noted the importance of relaxed monetary policy, according to Reuters.
The currency of the Pacific Rim nation also lost value after the country kicked off sales tax increases as April began. The Bank of Japan is likely to continue driving forward with monetary easing that Shinzo Abe began his term as prime minister in December 2012.
"Yellen's comments appeared to be more dovish than what she had said earlier … so the market does seem to be in a risk-positive mode," FX strategist Divya Devesh with Standard Chartered Bank in Singapore told Reuters wire service on Tuesday. "So we have seen the likes of commodities currencies rallying."
The yen also lost value against the New Zealand dollar on Tuesday after having marked an advance of 3.6 percent against its rival during the first quarter of the year.
Five of Japan's bigger banks are poised to provide the yen equal to $64 million in loans as part of a drive to establish a solar power station in Northern Japan, according to Bloomberg.
Risk Disclosure
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.
