Friday, October 8, 2010

Yen Strong Despite Bank of Japan Moves

In today's market report... the yen remained strong against the dollar, despite words from the Japanese central bank chief that it's affecting the nation's economy.

Bank of Japan Governor Masaaki Shirakawa, who's in Washington for the Group of Seven nations meeting, says the sharp yen rises weaken business sentiment and corporate profit.

Japan cut interest rates to zero this week and intervened in September to weaken the yen, but the currency has showed persistent strength.

Shares in Japan were flat early Friday, with the yen near a 15-year peak against the dollar.

Shirakawa says he hopes to explain the Bank of Japan's interest cutting decision when he meets counterparts on Friday.

U.S. payrolls data later in the day, as well as comments from the G7, are expected to keep Japanese and Asian investors in a wait-and-see stance.