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4 Jun 2013
Flash: USD/JPY´s fall below 100 a relief - DBS Group
FXstreet.com (Barcelona) - DBS Group analysts believe that the fall in USD/JPY below the psychological 100 level was a welcome relief for most currencies.
They add that the largest beneficiaries were the commodity currencies – AUD, NZD, CAD and ZAR. In Asia ex Japan, the PHP, KRW and the SGD appreciated most. The fall in USD/JPY below 100 was triggered by US ISM PMI manufacturing falling below 50 in May for the first time since November. They write, “Given that this was also the weakest reading since June 2009, US bond yields were not rattled by two Fed Presidents – Atlanta’s Dennis Lockhart and San Francisco’s John Williams – warning that Fed may taper asset purchases as soon as summer.”
They add that the largest beneficiaries were the commodity currencies – AUD, NZD, CAD and ZAR. In Asia ex Japan, the PHP, KRW and the SGD appreciated most. The fall in USD/JPY below 100 was triggered by US ISM PMI manufacturing falling below 50 in May for the first time since November. They write, “Given that this was also the weakest reading since June 2009, US bond yields were not rattled by two Fed Presidents – Atlanta’s Dennis Lockhart and San Francisco’s John Williams – warning that Fed may taper asset purchases as soon as summer.”