Daily FX Wrap Up

The dollar took a small dive against the Yen today in an otherwise boring market. Japan's top financial diplomat, Hiroshi Watanabe, indicated on Monday that he was not too concerned with the currency's recent declines stating that the Japanese economy is strong and has little fear of further decline. Many experts believe the North Korean nuclear testing causing a temporary slow down in spending has spooked the Japanese consumer. China may help ease the tension, with the troublesome nation, by acting as mediator between the UN and North Korea. If tensions are reduced, Japan’s recovery should proceed uninterrupted. The Dollar/Yen started off the day slowly climbing to its daily high at 119.65 before slumping to a low of 119.05 and finishing out the day in the 119.30 area. This decline came amid market anticipation the Fed would re-emphasize its concern about inflationary pressures in its statement accompanying its rate decision on Wednesday. Look for slow market trading tomorrow before the FOMC announcement at 1:15 pm Chicago time.