The statements by the Governor were doped yen

Waiting for the announcement of the results of these elections in mid-term today, the currency of the most powerful of the world fell yesterday to all other currencies. A decline that began in the morning and increased in the afternoon, after the opening of Wall Street. The greenback then fell against the euro. The European currency thus crossed the 1.28 dollar bar, 1,2819 dollar, before moving to 1,2808 dollar. The dollar also fell against the yen, moving to 117,42 yen, 118,29 yen against the previous day. US elections down a dollar Carole probably related to uncertainties General the outcome of the vote to des américaines baisse, le American decline, the le

Earlier in the day, the greenback had already lost ground against the Japanese currency, following statements by the Governor of the Bank of Japan, Toshihiko Fukui: after taking the cautious remarks last week, it adopted a harder tone. The Bank of the Japan will certainly continue to adjust its interest rate of "gradual and prudent" way, but it will not hesitate to carry out "a drastic policy change" if inflation starts to wrap, he warned. Before defending a "pre-emptive" monetary policy, "forward-looking", to avoid further fluctuations in the economy. "Such a policy means not wasting the potential of growth, but lead the economy towards a period of sustained expansion," he said, suggesting that raising interest rates was possible even when inflation is low.

"Toshihiko Fukui preparing markets for an increase in interest rates this year", held yesterday Glenn Maguire, Economist in charge of Asia to Société Générale. The statements by the Governor were doped yen. In July, the Bank of Japan ended more than five years of zero interest rate policy, under the rent of money from a quarter of a point. Since the Japanese economy has decelerated, and inflation remained at a low level. "But the Governor of the Bank of the Japan indicated yesterday that it would develop its monetary policy turning his eyes to 2007," said Glenn Maguire. According him, Japanese growth is expected to strengthen, and inflationary pressures grow.

Relaxation bond

Statements from other Central Bank Governors appear to have weighed on the dollar yesterday. Janet Yellen, President of the Federal Reserve of San Francisco, found that global central banks would probably diversify their reserves at the expense of the dollar. Global central banks holding nearly 3,000 billion, this would affect full boost the greenback. The euro and the yen would benefit however of this movement, on a background of higher rates of interest in Europe and the Japan. In this regard, Axel Weber, Member of the European Central Bank, said Monday the need to "stay vigilant on inflation in Europe in 2007 and 2008". What weighs new monetary liquidity.

Finally, the bond market it is relaxed yesterday. U.S. obligations 10 years lost 5 basis, to 4,643 points prior to the auction by the Treasury of $ 33 billion today and tomorrow, which should generate strong interest on the part of investors. "There is a very strong demand for the American bond, as the supply of new obligations decreased", said one operator.