Dats me<<<<<<<<<cuz I was afraid of the thunder last night hahahaha and I turned it alien...so thats that. Well I will talk later :) BYEEEE
<3
I feel awful for everyone in Japan, my Love goes out to them. :)FOREX-Yen eyes record high on repatriation; FOMC ahead
* Repatriation flows boost yen, BOJ adds money to economy
* One-month dollar/yen volatilities spike
* EU leaders agree to bolster bailout fund (Adds comments, details; updates prices)
By Wanfeng Zhou
NEW YORK, March 14 (Reuters) - The dollar fell against the yen on Monday and could test its all-time lows as Japanese insurers and companies repatriated funds to help pay claims and reconstruction costs in the wake of the country's devastating earthquake.
The dollar had dipped as low as 80.60 yen overnight, less than a yen from the record low of 79.75 hit in 1995. One-month dollar/yen volatility jumped a four-month high around 11.7 percent JPY1MO= from about 8 percent before the quake, suggesting expectations for large price fluctuations.
Analysts said the yen could rise further in the near term, potentially testing its previous record, though they cautioned against betting aggressively on yen strength.
The currency may come under pressure in the medium to long run as the earthquake will likely force the Bank of Japan to keep its easing policy for longer to help the economic recovery.
"We are neutral on the yen. In the short term, there's going to be some repatriation. But from a long-term perspective, Japan will go through some very difficult times, which means lower interest rates and a lot of stimulus for the economy," said Jonathan Xiong, director and global investment strategist at Mellon Capital Management in San Francisco.
"Currency is a relative game and this is a huge step back for Japan. Ultimately, fundamentals will drive the return of the currency and a lot of them don't bode well for yen," he added. Xiong is part of a team that oversees $28.6 billion in assets.
The dollar last traded 0.3 percent lower at 81.67 yen JPY=. It earlier rebounded to a high of 82.43 yen after the Bank of Japan doubled its asset-buying scheme to 10 trillion yen and supplied record funds to banks in an effort to stabilize an economy shaken by Japan's biggest earthquake on record. For details, see [ID:nL3E7EE0NH]
Traders noted support around 80.25, the November trough. Strong long-term support stands at the psychologically important 80.00 barrier and the 79.75 historical low.
Michael Hart, director of FX strategy at Roubini Global Economics in London, said the yen was set to rise before the quake, a trend that could continue in coming weeks as risk-averse households keep money home and the Japanese government sells some of its $1 trillion stash of U.S. Treasuries to help pay for rebuilding.
Since the yen rose some 12 percent against the dollar last year, Hart said subsequent gains may not be as sharp and swift as those seen after a 1995 Japanese earthquake, when the currency added some 20 percent in about three months.
But "yen strength is probably here to stay," he said.
One short-term limit to yen gains could be official intervention if the currency rises above 80 per dollar, analysts said. Yen strength hurts Japan's exports.
poor Japan..
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