5/10/2016, 8:04 AM (Source: TeleTrader)
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Yen drops with Taro Aso's pledge to intervene

Asian shares rose on Tuesday with the stabilisation of the price of oil, and a fall in the value of the yen helped Japanese shares up for the session after increasingly hawkish comments by officials that an intervention may be underway to counter speculative moves that drive the chronic appreciation. 

The Nikkei 225 rose 2.09% at 7:40 a.m. CET. Takata's shares plunged 9%, later retracing a fraction of losses, after unconfirmed reports that the government in Tokyo orderd a recall of seven million more vehicles with the company's airbags. The manufacturer estimated it will book a massive loss. Taro Aso, Japan's minister of finance and prime minister Shinzo Abe's deputy, told lawmakers today the United States has no objections to the country's foreign exchange policy and that the government may intervene against one-sided currency moves. He reiterated there is no intention to influence the exchange rate on a longer term.

In a similar scenario, the New Zealand dollar fell following remarks by finance minister Bill English that the central bank is mulling another round of stricter controls of loan to value ratio, and that the move could be made tomorrow. The island country is struggling with overheating housing prices, while overall inflation is subdued. The volume of electronic card transactions rose 7.8% last month on an annual basis, national statistics revealed today, or 0.9% from March, adjusted for seasonal effects, after rising just 0.1% in that month.

The NZX 50 index finished 0.35% up and the Australian S&P/ASX rose 0.36%. The yen lost 0.42% against the dollar and 0.58% compared to its Australian counterpart. The New Zealand dollar, or kiwi, fell 0.37% versus the greenback and was flat against the yen (all 8:03 a.m. CET).


Image: EPA / Franck Robichon

Breaking the News / IT