The pair closed the NY session at Y95.40, the rate having recovered off a NY session low of Y93.92 to Y94.53 before slightly easing off into the close. The dollar had been sold off versus other G-10 currencies in late NY, as market reacted to a WSJ Hilsenrath article warning that Fed tapering wasn’t intended to imply the Bank is looking to hike short term rates sooner, but dollar-yen chose to track the boost this comment gave to equities and moved higher. However, the Nikkei did open higher in Tokyo but dollar-yen decoupled with traders citing that despite the positive open it didn’t reflect the higher open expected via Nikkei furtures. From an early pre-Tokyo high of Y95.81 the rate was pressed down to Y94.43, the move aided by fix supply as well as PM Abe comments seen not breaking new ground in his growth strategy, and some pointing to a WSJ article suggesting market was left disappointed that a few key policy items they had been looking for (cut on corporation tax and a dereg of employment rules) were missing. G8 approaches into next week and Abe will be looking for support for his policies, possibly aided by the recent yen recovery. Bids Y94.00, Y93.50. Offers Y94.80-95.00.
