Tokyo (Dow Jones) - The collapse of the euro against dollar and yen in Asia Friday following European Central Bank President Jean-Claude Trichet's remarks in Tokyo mention more policy steps, including further rate cut. The euro fell to $ 1.3065 from $ 1.3153, and to Y129.95 from Y130.93, after Trichet's comments made their way across the market."While his comments were nothing new, confirmed the view of the market that the ECB is ready to announce atypical policy measures in May and cut rates further," said Minoru Shioiri, senior trader at Mitsubishi UFJ Securities.
Trichet, speaking in Tokyo, said nonstandard steps are required for banks and the ECB should do everything to restore corporate confidence. The ECB policy board is scheduled to meet on April 23 and May 7.
The euro was also fueled by sales Trichet's comments on currencies. He noted it is difficult to say that the euro is weak at present, and is very appreciative of the U.S. strong dollar policy of the remarks. Trichet's comments represented his "de-facto approval" for the participants to push the euro down further against the dollar, said Yuji Saito, head of FX at Société Générale.
Meanwhile, the greenback was little changed against the yen, but likely to weaken later in the day overall, traders said.
Looking ahead, the market will turn to the profit of the Citigroup report to be released later in the day. Players say positive results will not necessarily lead to a strong dollar. As good figures already priced in, the dollar could decline because the players sell-on-fact orders, said Hideki Amikura, a senior dealer at Nomura Trust and Banking.
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