Yen Mostly Flat Against Dollar But Touched Record Lows Against Euro and Kiwi

Yen was stronger against dollar but touched record lows against Kiwi as New Zealand CPI numbers were unexpectedly high rising expectations of rate hike in the upcoming meeting to 8.25%. The Stock and Bond Market was closed due to “Marine Day” in Japan.



Earthquake Strikes Central Japan Near Niigata Area:
An earthquake struck north-central Japan near Niigata, toppling houses, causing a fire at a nuclear power plant and suspending bullet train operations. Dozens of people were injured, reports said. The magnitude 6.8 quake was centered on the Japan Sea coast, the Japan Meteorological Agency said on its Web site. A tsunami advisory issued earlier by the agency was lifted. The quake’s epicenter was about 250 kilometers northwest of Tokyo, where buildings swayed for several minutes. Tokyo Electric Power Co. said three reactors at its Kashiwazaki-Kariwa nuclear power plant in Niigata were automatically shut as a result of the earthquake. A transformer caught fire, said Kiyoto Ishikawa, a Tokyo Electric spokesman.
Iran Cuts its U.S. Reserves to 20%; Asks Japan to Pay for Oil in Yen:
In an effort to cut its holdings of the U.S. dollar, Iran has asked Japanese refiners to begin using the yen to pay for imported crude oil. Iran is requesting yen-based transactions “for any/all of your forthcoming Iranian crude oil liftings.” The letter was sent to Japanese refiners and was signed by Ali A. Arshi, the general manager of crude oil marketing exports in Tehran at the National Iranian Oil Co. The decision is likely the result of a weak dollar, as well as escalating tensions over Iran?s nuclear program. The greenback recently hit a 26-year low versus the British pound, and came within a half cent of posting a record low against the Euro. The dollar remains the currency of choice in most international transactions. Were that to change, the demand for dollars would decrease markedly, and so would the dollar?s value.
Source: Money Morning
Japan’s Canon to build 55 bln yen plant for digital camera sensors - report:
Canon Inc plans to build a factory in Kawasaki for CMOS image sensors at a cost of about 55 billion yen to double its production capacity and meet rising demand for single-lens reflex cameras, according to the Nikkei newspaper. The report said the move is also meant to help Canon consolidate its position as the world’s leading digital camera maker.
Source: Forbes
Yen traded slightly higher flat today as Japanese markets were closed due to Marine Day. A massive earthquake before and expected Tsunami hit Japan and further slowed other business activities. However, Yen did make major moves against the Kiwi to the downside as expectations of an interest rate hike in the upcoming meeting increased after the CPI numbers of New Zealand came out above expectations. Limited gains of Yen against the dollar were mainly because of Iran asked Japanese refineries to use their own currency to pay for oil purchases. As of 3:00am New York time USDJPY was trading at 121.85

Markets were closed for the Marine Day Holiday
Markets were closed for the Marine Day Holiday