Wednesday, 1 April 2009

Japanese yen experiences turbulent trading

The movement of the Japanese yen has been quite turbulent today, as the currency was hit first by the Bank of Japan’s survey of corporate activity showing that confidence in the sector is dropping at a record pace, to reach its lowest point ever in the first quarter. Companies stated that the domestic market had a bleaker outlook than the foreign market.

Later the yen quickly recovered ground after news that the White House was prepared for the bankruptcy of Chrysler, but retreated slightly when an administration official reported it was inaccurate.

The BOJ is expected to meet next week to discuss the tankan (a quarterly poll of business confidence) and deflation, with speculators believing that the central bank will maintain its 0.1 percent interest rate.

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