The following data were published:
03:30 Japan BoJ meeting announcement 0.3%
06:00 Japan BoJ monthly economic report (November)
08:30 Germany PMI services (October) flash 46.2
08:30 Germany PMI (October) flash 36.7
09:00 Е15 PMI services (October) flash 43.3
09:00 Е15 PMI (October) flash 36.2
The yen declined against the dollar and the euro as a rebound in Asian
equities revived demand for higher-yielding assets financed with loans
in Japan.
The yen also weakened against the Australian dollar, a favorite of
so-called carry trades, after the Reserve Bank of Australia bought its
own currency for at least the fifth time in four weeks. The dollar
dropped versus the euro on speculation the Federal Reserve will cut
interest rates and flood the financial system with cash as a recession
causes prices to fall.
The MSCI Asia-Pacific Index of regional shares gained 2.9 percent,
after earlier sliding as much as 2.3 percent. U.S. stock-index futures
climbed, pointing to gains after the Standard & Poor's 500 Index
yesterday closed at an 11-year low.
The RBA bought a record A$3.15 billion in the market in October, it
said yesterday, as the Australian dollar touched 60.10 U.S. cents, the
lowest level since 2003. An RBA spokesman confirmed the bank bought
Australian dollars this morning, ``providing liquidity as on previous
occasions.''
The yen still headed for a third weekly gain against the dollar and the
euro as U.S. lawmakers held off taking action on a bailout requested by
the nation's automakers, spurring a reduction in so-called carry
trades.
U.S. Democratic congressional leaders said yesterday they will delay
action at least until next month on government support for General
Motors Corp., Ford Motor Co. and Chrysler LLC as the three companies
haven't yet made a case for the help.
The Bank of Japan kept its benchmark rate at 0.3 percent today and said
it will consider pumping more money into the financial system to prop
up an economy that fell into a recession last quarter. Japan's rate
compares with 6.5 percent in New Zealand, 3 percent in the U.K., 8.25
percent in Mexico and 4 percent in South Korea.
EUR/USD having begun the session in the field of $1,2425, the pair has become stronger above a level $1,2500.