Posted by cvbasheer on January 21, 2010
Yen Mildly Lower after Strong China Data, Dollar Firm
Japanese yen is a touch softer in Asian session today after China released solid growth data. However, the reaction is so far mild as investors are still concerned that surging inflation and risk of asset bubbles would trigger more tightening measures from the Chinese government. Dollar index breached December’s high of 78.45 overnight and remains firm. New Zealand dollar failed to react to stronger than expected retail sales data overnight and remains the weakest currency this week. Euro is the second weakest and remains broadly pressured and is vulnerable to PMI disappointment later today.