Monday, April 11, 2011

DOLLAR FALLS AGANST THE JAPANESE YEN AFTER LATEST AFTERSHOCK



From ABC News.

The dollar fell against the yen Monday after another powerful earthquake shook northern Japan, setting of more tsunami alerts.
Monday's large aftershock came exactly a month after an earthquake and tsunami flattened towns and damaged a nuclear plant in northern Japan. It's the second strong aftershock to hit northern Japan in less than a week.
The dollar was worth 84.75 Japanese yen in late afternoon trading in New York, down from 84.89 Japanese yen late Friday.
The Japanese yen is considered a safe-haven currency and tends to get stronger during times of turmoil. Days after the March 11 earthquake and tsunami, the yen reached a new record high against the dollar.
Elsewhere, the U.S. dollar traded between narrow ranges and was nearly unchanged Monday. The euro edged down to $1.4429 late Monday from $1.4435 late Friday.
This is happening despite the massive amount of interventions that the Federal Reserve and Bank of Japan have been doing over the past months. 

The Dollar/Yen exchange rate is one of the driving forces in the anime industry in both U.S. and Japan. During the "Golden Age" of anime in the 1980's the Dollar/Yen exchange rate was $1 USD = 240 JPY if the dollar keeps getting weaker it makes anime much more expensive to acquire for the U.S., Australia and European market. 

Further reading.

Jitters mount spurring yen and dollar gains after the Japanese quake- FXstreet.com
Canadian Dollar Drops To 4-day Low Against Yen- RTT News
Yen rebounds against dollar, euro after new earthquake- International Business Times

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