The US dollar was trading 0.21% higher against the Japanese yen this afternoon, as yesterday’s combined effect of Moody’s downgrade of Japan’s AAA credit rating and a new intervention in the forex markets by Tokyo finally appeared to stem the downward movement in USD/JPY.
Also adding support to the US dollar this afternoon is a report revealing that the latest initial jobless claims figure rose this week to 417,000 from 408,000 the prior week. The worse-than-expected data supports speculation that US Federal Reserve chairman Ben Bernanke might signal a third round of quantitative easing, or other measures, in an effort to stimulate the economy. He is due to give a speech tomorrow at 3pm (London time). Tomorrow, the US will also be eagerly awaiting the release of its second-quarter GDP data. By 2.30pm (London time), USD/JPY was trading at ¥76.6517.