The pair is fall in early Asia, hit by the tumble of the euro after EU finance ministers agreed to an unprecedented tax on bank deposits in Cyprus in exchange for a E10 billion rescue plan for the debt-laden country, spurring fresh concerns about the debt crisis in Europe. The pair is now at Y94.41 versus Y95.28 in late New York. The euro the currency is trading at $1.2918, day’s low, versus $1.3076 in late New York on Friday, while trading at Y122.08 versus Y124.58 in late New York on Friday. Investors will also focus on the possible contagion of the debt crisis to other countries in the region, especially Italy and Spain. Meantime, the pair is likely to see some support from the lingering speculation about additional monetary easing in Japan. The Nikkei reports that the BOJ is mulling additional easing steps, such as an expansion of government bond purchases, at its first policy board meeting under its new governor. The Diet confirmed Friday ADP President Haruhiko Kuroda as the central bank’s governor, as well as Gakushuin University economist Kikuo Iwata and BOJ Executive Director Hiroshi Nakaso as deputy governors. The three will assume respective posts on Wednesday.
EasyForexNews Research Team