FX Closing Comments

The Yen was a big-moving currency contract today, with price action being influenced by a number of factors. One factor was an overnight rumor that a special Peoples Bank of China meeting had been scheduled to widen the Yuan trading range. This chatter came as the Yuan hit a post revaluation high in Asian trade, though China declined comment on the rumor. Japan also upgraded its economic assessment and officials have been "cautiously hawkish" in recent remarks. There was also some Yen buying in response to the Cabinet Secretary, who intimated that recent developments in North Korea would not alter their interest rate policy. BOJ Governor Fukui was also on record saying that all matters would be discussed when considering policy. Traders took these remarks as a sign that rates may be going up next week at next Friday's meeting. The broadly based Dollar sell-off also helped matters during the U.S. session. The September Yen Futures Contract gapped-up 34 points to open at .8806, reached a high of .8875, and closed at .8859. (fill-in name)