The USD-JPY and JPY crosses came under steady selling pressure in Asia as worries over the global growth outlook dominated in the wake of the recent bout of poor unemployment data, culminating in the U.S. non-farm payroll data last Thursday. The Nikkei and DJIA futures lost ground and this helped push USD-JPY from opening levels around 96.00 to lows of 95.26. EUR-JPY fell from opening levels around 134.00 to lows of 132.97, helping pressure the EUR-USD to lows of 1.3952 though purported option defense stalled a break lower. The dollar's status as a reserve currency was once again in focus ahead of the G-8 meeting this week, with another BRIC nation, India, calling for diversification, and with ECB's Trichet, France, Russia and China all expressing various views on the USD though China and Russia admitted there was little alternative to the USD. The comments had little impact on trading. Worries over global growth sent oil lower to test under $65 with copper and gold also losing ground. Asian stock markets were mixed with China higher but the Nikkei and Australian markets lower. Treasury yields edged down on growth concerns.
Al Bawaba
