10 April 2001, 12:37 Forex: Yen strengthens in early London trade on Japanese intervention talk
LONDON (AFX) - The yen strengthened against most leading currencies
in early trade, boosted by overnight comments from Japan's Finance
Minister Kiichi Miyazawa, dealers said.
Audrey Childe-Freeman, economist at CIBC World Markets, said the
yen correction came as a result of Miyazawa's comments that Japan is
aware of the issues that a weaker yen could cause for the rest of Asia.
She added: "Further verbal intervention from Japan is leading to a
more cautious approach on the yen, even though a further downgrade on
Japan in the EPA economic assessment is not good for the currency."
Meanwhile, the euro opened the session down against major
currencies on last-minute doubts as to whether or not the European
Central Bank will cut its key rate on Wednesday. It then recouped some
ground.
Dealers expect the single European currency to remain confined to
narrow ranges ahead of tomorrow's ECB governing council.
Childe-Freeman said: "It's not a done deal at all and investors are
now wond ering whether a will cut will take place."
Sterling/dollar remained firm after the release of a firm British
Retail Consortium survey.
Figures from the BRC showed like-for-like retail sales increased by
4.8 pct in March, while the three month trend for like-for-like sales
improved from 3.3 pct to 3.8 pct.
"This BRC was quite supportive for sterling today after yesterday's
sterling/dollar upward move on mergers & acquisitions flows," said
Childe-Freeman.
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