Risk sentiment led investors to snap up the yen in the Asian bourses on September 26. The US Dollar went to a 100.71 yen low before jumping back to 100.97 yen during the morning session. The American dollar was trading at 101.00 on September 23 in New York. In contrast, the euro remained almost the same at 113.40 yen to 113.41 yen in New York. The Australian dollar slipped a little from 77.00 yen to 76.90 yen.
Japanese stocks down
Stocks in Japan went down on September 26 after there was a decline in the important stock indexes on September 26. The Nikkei Stock Average-a benchmark- fell 0.9 percent in the latter part of the afternoon trade. Investors sought the safety afforded by Japanese currency over weaker stocks earlier in session. Midday time saw the yen being sold. This helped to moderate strength of Japanese currency. American investors lacked fresh cues at the time of Asia trade post Federal Reserve policies in the United States and also by the central bank in Japan.
Investors are keen to hear the speech given by Governor Haruhiko Kuroda of Bank of Japan when he will meet a number of business leaders in the wester Japanese city of Osaka. The former, however, do not expect the Governor to offer any kind of fresh incentives post the new policy framework unveiled by Bank of Japan during the third week of September. It included a target of almost zero for benchmark 10 year duration Japanese government bond yield. Participants in the currency market await the US Presidential debate scheduled to be held between Donald Trump and Hillary Clinton on September 26 in the United States.
According to Shinichiro Kodata of Barclays (NYSE: BCS), Tokyo, there is no expectation that the dollar will fall further sans any trading cues. He is aware that the United States currency has confirmed the downside support even after it dropped below the 100 yen line in July. He further said that the American dollar in all possibility remain within the range for 100 yen to 101 yen for quite some time now. Kadota is an experienced FX strategist in his bank. When it comes to other currency trades, the euro was up at $1.1229 at midday. The previous close was $1.1224. The measure of dollar against other notable currencies, known as WSJ Dollar Index was up by about 0.01 percent at about 86.51.