Yen up as NZ dollar falls

Published: 20 Feb at 9 AM Tags: Euro, Dollar,

The US dollar has slipped against the yen as uncertainty surrounds the Japanese government’s policy concerning the devaluation of the country’s currency. Although Prime Minister Shinzo Abe has suggested that buying up foreign bonds may be considered, Taro Aso, Finance Minister, has said that the move is not currently an option.

The greenback dropped 0.1 per cent today to 93.55 yen. The euro has risen against the dollar to $1.3413, an increase of 0.2 per cent.

The Japanese premier has promised to push down the value of the yen in order to boost exports and is expected to replace current governor of the Bank of Japan, Masaaki Shirakawa, with someone more malleable to his ideas. However a delay in the nomination of a successor suggests friction between Abe and his finance minister.

Akira Amari, Economics Minister, said the nomination of a new central bank leader will now not take place until Abe returns from a trip to the US this week. Strong economic data coming out of Germany saw the euro hit $1.3413, a hike of 0.2 per cent against the greenback.

Elsewhere the New Zealand dollar dropped to $0.8404, a slide of 0.8 per cent as the governor of the Reserve Bank of New Zealand, Graeme Wheeler, declared that the currency is overvalued.