In A Rare Move, Bank of Japan Issues Market Warnings by Supplying Dollars

Hong Kong (PRWEB) November 08, 2011

For the first time in more than a year, the Bank of Japan supplied dollars in market operations, according to online Forex Ecn experts at InvestTechFX, which indicates that global market strains could push the Yen higher again. The exposure of banks to the Euro zone debt crisis has raised fears of a new credit crunch due to which dollar funding has become increasingly tight in global money markets.

With Japans money markets being largely stable and Bank of Japan’s operations to supply unlimited amounts of dollars since July 2010, it was immune to these concerns. The central bank recently supplied $ 2 million for a week in one operation and $ 100 million in a second operation for three months. Online Forex operators at the company InvestTechFX speculated that a non-Japanese bank with operations in the country wanted the money to secure their funds for the end of the year.

Some banks are expected to rely on funding from central banks with a widening in money market rates due to Europe’s debt woes. The current debt crisis has made it cheaper for banks to raise dollars under the Bank of Japans fixed-rate dollar operation that rarely draws bids because it usually costs more than borrowing dollars in the open market, though it offers unlimited amounts of dollars against collateral.

The Yen rose to a fresh record high against the dollar and sold heavily this week due to the euro zone debt crisis that poses risks to Japan’s economy and it is likely that global market will remain under intense strain with Europe’s debt problems not getting resolved anytime soon. After EU leaders drew up the measures, stock-gains made last week have been wiped out in a relief rally as Japan is in the process of stepping up monetary easing.

The FX trading company InvestTechFX is a proven leader in the industry of artificial intelligence software. Their advanced, customizable, intuitive, efficient, and sophisticated trading Forex currency exchange tools empower people to make the most of successful Fx Trading . The top online Forex operators have more than 20 years of experience in the financial markets and they offer new, exciting, and innovative solutions along with a detailed and comprehensive learning center.

# # #

Tags: , , , , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]