Yen, Franc Fall on Concern Central Banks May Act; Dollar Gains Versus Euro
Yen Falls on Speculation Officials Will Act to Curb Gains
Tomohiro Ohsumi/Bloomberg
A woman arranges Japanese 10,000 yen notes for a photograph in Tokyo, Japan.
A woman arranges Japanese 10,000 yen notes for a photograph in Tokyo, Japan. Photographer: Tomohiro Ohsumi/Bloomberg
Aug. 22 (Bloomberg) -- Geoff Kendrick, head of European currency strategy at Nomura International Plc, talks about currencies and prospects for the Swiss National Bank to curb gains in the franc. Kendrick, speaking with Francine Lacqua on Bloomberg Television's "On the Move," also speaks about the outlook for Federal Reserve Chairman Ben S. Bernanke's remarks at the Fed's annual symposium in Jackson Hole, Wyoming, later this week. (Source: Bloomberg)
Aug. 22 (Bloomberg) -- Nick Bennenbroek, head of currency strategy at Wells Fargo & Co., talks about the currency policies of the Japanese and Swiss central banks and investment strategy. Bennenbroek speaks with Scarlet Fu and Deirdre Bolton on Bloomberg Television's "In the Loop." (Source: Bloomberg)
Aug. 22 (Bloomberg) -- Adrian Schmidt, a foreign-exchange strategist at Lloyds Banking Group Plc, discusses the outlook for currency markets and investment strategy. Schmidt, speaking with Francine Lacqua on Bloomberg Television's "Countdown," also talks about the outlook for Federal Reserve Chairman Ben S. Bernanke's comments later this week at the Fed's annual symposium in Jackson Hole, Wyoming. (Source: Bloomberg)
Aug. 22 (Bloomberg) -- Thomas Harr, head of Asian currency strategy at Standard Chartered Plc in Singapore, talks about global currencies. Harr, who also discusses the U.S. economy and Federal Reserve monetary policy, speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Aug. 19 (Bloomberg) -- Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong, talks about the U.S. dollar, yen and Swiss franc. Trinh also discusses the outlook for the global economy. John Woods, Hong Kong-based chief Asian strategist at Citigroup Inc.'s private bank, also speaks. Trinh and Woods talk with John Dawson, Susan Li and Zeb Eckert on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Aug. 19 (Bloomberg) -- Stephen Gallo, head of market analysis at Schneider Foreign Exchange, talks about the potential that the euro region could disintegrate because of the sovereign debt crisis. Gallo, speaking on Bloomberg Television's "InBusiness With Margaret Brennan," also discusses the outlook for currency markets. (Source: Bloomberg)
Aug. 18 (Bloomberg) -- Jens Nordvig, a managing director of currency research at Nomura Holdings Inc., talks about Europe's sovereign debt crisis and the outlook for the euro. He speaks with Tom Keene and Pimm Fox on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg)
Aug. 18 (Bloomberg) -- Nobel economics laureate Paul Krugman speaks with Bloomberg's Johan Carlstrom about the European sovereign debt crisis, Italy's economy and the risk of another global recession. They spoke today in Stockholm. (This report is an excerpt. Source: Bloomberg)
The yen weakened from almost its postwar record against the dollar and the Swiss franc tumbled amid speculation policy makers in both countries will seek to curb gains in their currencies that are hurting exporters.
The dollar gained versus the euro as stocks pared advances, while the New Zealand dollar and Swedish krona rose versus all of their most-traded peers. The yen dropped the most in two weeks after Japanese Finance Minister Yoshihiko Noda said he’s ready to take decisive steps to stem its strength. Most Swiss support intervention by their central bank to stop gains in the franc, the newspaper SonntagsZeitung reported yesterday.
“We’ve had further comments by Noda and other Japanese officials indicating a lack of comfort with yen strength,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank. “Renewed jawboning has contributed to yen weakness.”
The yen fell as much as 0.9 percent to 77.21 per dollar before trading 0.3 percent weaker at 76.78 at 11:51 a.m. in New York. The intraday drop was the biggest since Aug. 4, the day Japan sold its currency. The Japanese currency depreciated 0.2 percent to 110.39 per euro.
The euro was down 0.1 percent to $1.4383, after gaining earlier as much as 0.3 percent, versus $1.4397 on Aug. 19.
The franc declined 0.3 percent to 1.1334 per euro, and was 0.4 percent weaker at 78.80 centimes per dollar.
The Standard & Poor’s 500 Index was up 0.2 percent after earlier climbing as much as 2 percent.
To contact the reporters on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net; Garth Theunissen in London gtheunissen@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
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