Real-time Stock quotes, portfolio, LIVE TV and more.
Feb 26, 2013, 05.11 PM IST
Mecklai graph of the day: The week has started with an incredible amount of volatility in the market, be it drop in euro, rebound in sterling or single day biggest drop in Dow Jones since November.
Mecklai graph of the day: A Momentary Spark?
The week has started with an incredible amount of volatility in the market, be it drop in euro, rebound in sterling or single day biggest drop in Dow Jones since November. However, the movement in Japanese yen has been profound with an appreciation of 389 pips to the pair’s (USDJPY) intraday low of 90.88 in the last session after testing a 2 year high of 94.77. Even an asset purchase program announced by BOJ in Feb last year did not have that kind of impact on yen. Hope of an accelerated or expanded stimulus program initially encouraged the pair and other yen crosses higher, but the follow through effort quickly diminished after political uncertainty in Italy favored risk aversion drive.
Here, possibility of one-off move cannot be ruled out as the volatility came after appointment of new BOJ Governor Haruhiko Kuroda a staunch supporter of more stimulus to devalue the currency and aid exporters for growth. Still, the shift is interesting as it can signal the beginning of a much more prolific reversal for all of the yen crosses which have seen the Japanese currency devalued approximately 20 percent in the span of just five months.
Below graph shows intraday movement of USDJPY since May 2010
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
May 23 2013, 16:33
- in Asian markets
May 23 2013, 09:33
- in Technicals