The U.S. dollar dropped to its lowest in seven months against the Japanese yen in Forex Trading last Friday; it was definitely influenced by the comments made by Hirohisa Fujii (Japanese Finance Minister) who said that he "strongly opposed deliberately weakening the yen or any other currency", a good indicator of his future economic policy decisions.
Forex Traders cited a Kyodo News report saying Fujii told U.S. Treasury Secretary Timothy Geithner, on a meeting on Thursday evening, he was opposed to manipulating the value of the yen.
Japan's Government had intervened in the currency market in the past to weaken trends of the yen, assuming that it helps to keep its competitive advantage in global trade. But the new finance minister believes that the yen should reflect Japan's economic conditions.
U.S. gold futures ended lower on Friday as investors took profits due to a lack of physical demand and after prices failed to break above technical resistance levels earlier this week. The drop in Gold prices is a good indicator of the level of confidence in economic agents in the entire world.
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