Dollar-yen closed in NY at Y93.14 after rate had recovered off session lows of Y92.77, with moves Thursday mainly driven by a corrective pullback in the euro. Euro-yen was pressed back to Y122.26, extending the pullback from recent highs at Y125.90 (Weds Feb20), this rate closing NY at Y122.68. Dollar-yen saw an initial dip to Y92.93 into early Asia before demand into Tokyo lifted the rate to Y93.36. Post fix dollar supply pressed rate back to early lows before oil importer demand bounced rate back through the early highs and on to Y93.42. Position adjustments ahead of today’s PM Abe/US Obama meeting, along with the looming weekend and expectations that the new BOJ Governor will be announced shortly after the PM’s return, seen playing their part in edging yen pairs higher. Euro-yen recovery edged to Y123.46, opening Europe around Y123.40. With euro-yen playing a major role in yen moves this morning’s Germany Ifo at 0900GMT and the ECB announcement of LTRO2 repayments at 1100GMT to be watched for reaction.
EasyForexNews Research Team