This article is based on the economical news that Mr. Ben Bernanke is again appointed for the chief of Federal Reserves. Forex market is heavily impacted by this news and JPY a low yielding currency jumps, whereas US Dollar showed a small reaction on this news.
Online PR News – 27-August-2009 – – On Tuesday, The JPY headed higher as equities fell and Forex investors have been taking interest in the higher yielding Forex currencies ebbed. The big news today are that Ben Bernanke, chief of Federal Reserve, would be reappointed.
The official of A.U.S. administration said the US President, Barak Obama, would appoint again Bernanke for a 2nd term, as the chairman of Fed.
The US dollar showed a small reaction to the news, as participants of the Forex market had thought there was a good opportunity Bernanke would be given a 2nd term to reassure the financial markets, as they get better from the global financial crisis, Economical analysts said.
No major impact is expected, but it must be optimistic for the Forex market, such as the equities and the bond markets in the sense that part of uncertainty has been detached”, said Takahide Nagasaki (The Chief Strategist of Daiwa Securities).
The JPY, a low yielding currency, tends to gain when equities and the higher yielding currencies plunge down or when the weak economic data emphasizes a long and doubtful way for global recovery.
The US Dollar fell 0.5% on the day to 94.13 JPY, although it remained above 93.42% the last week’s one month low.
The EUR fell 0.7% to 134.28 JPY and the AUD dropped 0.8% to 78.45 JPY, after climbing to its uppermost level in a week on the Monday, just below 80.00 JPY. The NZD dropped down 0.6% to 64.24 JPY.
The AUD also slipped 0.4% to $0.8347, but NZD eased just 0.1% to $0.6839, holding seal to this month’s eleven month high at $0.6888.