By TraderVox.com
Tradervox.com (Dublin) – The Japanese currency dropped against most of its counterparts yesterday prior to the Bank of Japan meeting minutes release expected tomorrow. The drop came as economists and analysts speculate that Bank of Japan will make additional easing to the monetary policy. The yen dropped against the 17-nation currency after Panasonic Corp. predicted one of the worst losses is the company history. Reports of this loss have spurred speculations that the nation’s trade deficit will worsen. The Australian dollar has continued with its impressive performance after Chinese PMI data showed improvement in the manufacturing sector.
Shinji Kunibe, the Chief Portfolio Manager at Nissay Asset Managament Corp in Tokyo, has indicated the expectations of additional monetary easing in Japan still remains in the market despite the central bank announcing a 11-trillion yen additional stimulus. Shinji added that the Panasonic loss forecast and the signs of widening trade deficit will result to a weaker yen sooner than it had been predicted. The BOJ had announced eleven trillion additional stimulus on October 39 bolstering the stimulus package to 66 trillion yen. Panasonic is predicting a total loss of 765 billion yen in the year ending March 31. Nintendo Co cut its profit projection last week citing the stronger yen.
According to a Ministry of Finance statement released on October 30, the country’s imports exceeded exports by 3.22 trillion yen in the half year period ending September 30; this is the largest trade deficit for fiscal half-year period. Official figures from China showed that the manufacturing PMI rose to 50.2 in October from 49.8 in September, boosting the demand for Australian dollar. The yen dropped by 0.4 percent against the euro to trade at 103.75 yen at midday trading in Tokyo, after it lost 0.4 percent in the last two days. The Japanese yen was trading 0.4 percent weaker against the dollar at 80.04 yen.
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