Market Report – Dollar Slips, Eyes on Japan Response

In today’s market report… the dollar fell to its lowest level Wednesday since the Japanese government took steps to lower the value of the yen.

The yen and euro rose against the dollar, raising expectations that Japan would again intervene after a break of 85 to the dollar.

Prime Minister Naoto Kan said in a Financial Times interview that intervention was „unavoidable“, if there was a drastic change in the currency.

Kan says Japan intends a complete package of measures to stimulate domestic demand as well as to weaken the currency.

The Nikkei held steady, as exporters continued their decline this week with the Japanese currency’s renewed rise.

Panasonic, though, bucked the trend after a Nikkei newspaper report that the consumer electronics giant would abandon new share issuance and loans to finalize its Sanyo Electric buyout.

Sharp also gained on plans to buy private solar power company Recurrent Energy for up to $305 million, hoping to boost its photovoltaic cell business.

Share markets in China, South Korea and Taiwan were closed for public holidays.

Foto: NTDTV