Yen falls down against dollar, euro
The yen edged down against dollar and euro in Asia after Japan posted its worst ever trade deficit.
TOKYO (AFP) - The yen edged down against the dollar and euro in Asia on Wednesday after Japan posted its worst ever April trade deficit fuelling yen-negative sentiment.
The dollar was quoted at 102.58 yen in Tokyo midday trade against 102.47 yen in New York late Tuesday.
The euro also firmed to 132.55 yen from 132.26 yen in New York and to $1.2921 from $1.2906.
Official data released on Wednesday showed that Japan incurred a trade deficit for the 10th straight month in April with the shortfall expanding almost 70 percent on year as a weak yen pushed up import bills.
It was the biggest deficit for the month of April in comparable official data that goes back to 1979.
Trade data is a closely watched indicator of Prime Minister Shinzo Abe s progress in firing up Japan s export-heavy economy.
Expectations for Abe s pro-spending, pro-growth policies have weakened the yen more than 20 percent against the dollar over the past six months and boosted share prices to their highest level in more than five years.
The Bank of Japan is widely expected to hold off fresh measures as it winds up a two-day policy meeting later Wednesday after its massive monetary easing in early April drove the yen down to multi-year lows against the dollar.
The market on Wednesday is awaiting testimony in Congress by US Federal Reserve chairman Ben Bernanke.
Investors will be watching for signs that the Fed might be ready to alter its quantitative easing (QE) policy, or project just when and how it might reel in its aggressive bond purchases.
"His comments on the likelihood of an earlier end to QE could have significant directional impact on the USD and investors may be wary of placing large directional bets until they see the details of his speech," National Australia Bank said in a note.
