Wednesday, July 25, 2007

Yen Mixed Versus Major Counterparts, Wednesday, July 25, 2007 6:54:08 AM

The yen experienced mixed results versus its major counterparts Wednesday morning in New York. The Japanese currency advanced to a nearly one-month high against the euro and also gained ground versus the pound. Meanwhile, the yen retreated versus the dollar. Traders considered data showing that the Japanese merchandise trade surplus grew better-than-expected in June.

The yen fell against the dollar Wednesday morning in New York. The Japanese currency experienced choppy trading before beginning a retreat just after 5:00 am ET. By 6:30 am, the yen slid to a mark of 120.44. This is compared to an intraday high of 119.92 just before 3:00 am. Greenback traders looked ahead to Wednesday`s release of the Federal Reserve`s Beige Book.

Against the euro, the yen advanced to a nearly one-month high Wednesday morning in New York. The Japanese currency slid during the early morning, dipping to an intraday low of 166.22 at 1:20 am ET. The yen advanced after that, reaching an intraday high of 165.03 just after 5:00 am. The Japanese currency gave back some of its gains over the next couple of hours to trade at a mark of 165.30 at 6:45 am. European currency investors considered data showing that French business confidence was unchanged in July, matching expectations.

The yen edged higher versus the sterling Wednesday morning in New York. At 6:45 am ET, the Japanese currency traded at a mark of 246.96. This is compared to an intraday high of 246.46 just after 5:00 am and an intraday low of 247.91 at 1:20 am. Sterling investors looked ahead to Thursday`s release of nationwide housing prices for July.

Japanese merchandise trade surplus grew better-than-expected in June, the Ministry of Finance announced Wednesday. The trade surplus surged not seasonally adjusted 53.4% annually to 1.227 trillion yen in June. Economists were looking for an excess of 955.0 billion yen. In May, the trade surplus reached 385.1 billion yen, up 8.1%. Compared to the same month last year, exports improved 16.2% to 7.284 trillion yen. The total electrical machinery exports advanced 7.3% annually, of which semiconductors gained 7.8%.
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