Thursday, March 13, 2008

USD with top bottom

USD
The USA currency fell under the psychological value of 100 YEN per USD, which happens for the first time for the last 12 years. This is because of hard apprehensions about going of American economy in recession and the continuous credit crisis.
The currency crashed to a record bottom toward the EUR and CHF, before the important data for American retails and the applications for unemployment later. The Japanese currency raised with 24% toward the USD for a period of 9 months, which will cause a serious problems to the profit of Japanese companies. China often use the YEN as a currency in stead of its, inb international transactions.
”The investors are leaving too quickly their USD positions, which will be a great problem for us”, commented Japanese analyzer in front of Bloomberg. “The American economy, which is the strategy important market, is going in recession”, continued he.
The USD decreased to 99.76 YEN, earlier today, which is the lowest level from 9th November, 1995. In the moment the price is again over 100 JEN, but yesterday the US currency 102 YEN per USD. The USD fell to new top bottom with a fixing of 1.5628 USD per 1 EUR.
Japanese government involved into the currency markets 4 times from 1995 till now, to decrease the price of the YEN and to support the export. The Japanese bank sold 14.8 trillions YEN (146 millions USD) in the first 3 months of 2004, which were after the selling of 20.4 trillions YEN in 2003. All this were done, because the Japanese economy is directed for exports and don’t need expensive currency. With a less expensive currency the Japanese economy will keep the good in concurrent prices. The too cheap US Dollar is making a bad reflection over Japanese export to USA, where are going 25% from all goods made in the Asian country.

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