Roll back the yen against the dollar in the short term rally

Tokyo:  The dollar edged higher Monday in a short covering rally against the yen, which weakened against other currencies as investors took off their yen positions ahead of the Bank of Japan monetary policy this week. To little surprise, the meeting of the Bank of Japan, which ended on Tuesday, with the hope that policy makers, the tool is an inexpensive way to extend a bid to support the economy.

However, some traders said the dollar for a small speculation in the market that can take all the steps in the yen-selling intervention by itself if the player is not expected that you will help before the IMF meeting. Financial management to meet the International Monetary Fund meetings this week and keep the concept of exporting their currencies weak profits tend to be a hot topic. short dollar positions built as Fed expected to give near quantitative easing, followed by a sluggish U.S. economy a boost.

"This is negative for the dollar, but the situation in the short term the market can cost a lot," said Masafumi Yamamoto, head of currency strategy at Barclays Capital Japan. Traders said the dollar remained at 83.40 yen and up to 83.60/70 yen caused it as high as 83.88 yen. Reach its lowest level in 15 years 82.87 yen on September 15, shortly before Japan intervened for the first time in six years to ban removal yen strength, and the market must be careful to sell the dollar too aggressively against the yen since then.

Cabinet Secretary, Yoshito Sengoku, said in an interview with Reuters at the weekend that moves the yen is too speculative. But the report also provides U.S. $ 84.00 yen distributor above, covered with a limited profit. Increased by 0.4 percent to 83.56 yen. swelling of currency speculators bet "against the dollar at $ 22000000000 show week to 28 September, the highest since at least mid-2008, data from the Commodity Futures Trading Commission.

Long positions in the euro rose to 35,330 contracts from 5097 last week, while a long position in yen rose to 28 666 23 100 contracts. Euro, the highest in more than four months reached 115.29 yen and at a standstill. Which rose 0.3 percent to 115.15 yen a day. Euro is a quick run through the level of $ 1.3800 the strongest since mid-March at the very early Asian trading, but later moved into marketing contracts in the Middle East banks, "said one Canadian bank agent.

Fell 0.2 percent to $ 1.3760, but still stuck to most of the gains from Friday when it rose to 1 percent. "Even a big problem in Europe, apparently still only alternative to the U.S. when it comes to the diversification of foreign reserves," said Robert Ryan, senior currency strategist at BNP Paribas in Singapore. U.S. dollar index rose slightly by 0.2 percent to 78.195, after reaching an eight-month lows on Friday, 78,029.

Data on Tuesday showed U.S. manufacturing slowed last month, and inflation to remain vigilant in August to start the door open for the Federal Reserve, a new round of reductions. Two Fed policy makers also said any further action, unless the prospective customer may need to improve and investors see this Friday's employment data for further instructions. Australia has a short holiday on Monday.

The Australian dollar by 0.2 percent to $ 0.9696, but still nearly two years of high $ 0.9751 set on Friday. Central Bank to review rates on Tuesday and is seen as more likely than not to increase the cash rate by 25 basis points to 4.75 percent, although that decision has not been much to be done. If not, the movement for the first time since May