Japanese yen is mostly lower today, dropping as Forex traders look for direction in general for the markets. There is just enough risk appetite to reduce demand for the yen, but enough uncertainty that there haven’t been any major moves today.
Right now, though, there is a great deal of focus on the bank bailout of Japanese electronics companies. Banks in Japan are issuing $6 billion in new loans to Sharp Corp and Renesas Electronics in the hopes that it will buoy the companies up long enough for them to repay other outstanding loans. The Japanese banks are putting the companies on life support, and hoping things will turn around.
On the Forex market front, there is a lot of interest in what will happen with Spain. Moody’s is reviewing the sovereign debt situation, and expected to make a call on whether or not to downgrade the rating by the end of the day. It should be an interesting decision, and it’s one that financial markets everywhere are waiting for.
For now, the yen is mostly lower, though. There’s enough hope out there to provide some support for risk, even though no one is too enthusiastic right now.
At 13:14 GMT USD/JPY is up to 77.6400 from the open at 77.6050. EUR/JPY is up to 100.3650 from the open at 100.2150. GBP/JPY is down to 125.7860 from the open at 125.9975.
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