Izumi Devalier, Japan Economist at HSBC, discusses Japan's below-view fourth-quarter economic growth data and record current account deficit for January.» Read More
European leaders finally agreed on the outlines of a rescue, and risk is back on big time — it's time for your FX Fix.
The Bank of Japan meets this Thursday, and more easy-money policies could lie ahead - but this strategist says betting against the yen is a mistake.
Martin Schulz, senior economist at Fujitsu Research Institute, admits that Japan's economy needs more support but is unlikely to get it.
Just as Japan found in the 1990s, a zero interest rate policy (ZIRP) creates a bifurcated economy, with healthy companies able to borrow cheaply, while small businesses and underwater homeowners continue to struggle. The FT reports.
Alexandra Lebenthal, CEO of Alexandra Lebenthal, told CNBC she was pleased by yesterday's coordinated dollar injections by five central banks. "Global markets are so connected that there has to be a concerted effort on what to do," she said.
The coordinated injection of dollars into banking systems by five of the world's largest central banks is the biggest news in the markets, Valentijn Van Nieuwenhuijzen, head of strategy at ING Investment Management, told CNBC.
Five of the world's largest central banks have announced a coordinated injection of dollars into banking systems, in response to growing concerns over liquidity problems in the euro zone. However, analysts say, they cannot solve the underlying solvency crisis.
Central bankers across the globe acted today to end a growing dollar liquidity crunch for European banks by offering three-month dollar loans.
"The Japanese Yen is being used by people as the last resort," Seijiro Takeshita, director at Mizuho International, told CNBC.
Masayuki Kichikawa, MD, chief Japan economist at Merrill Lynch Japan Securities, says that Noda's conservative fiscal stance means that he's likely to increase tax, weaken the strong Yen, and request the BOJ to further ease monetary policy.
Brian Bridges, Professor of Politics at Lingnan University says there is potential for factional trouble within the party.
"My favourite candidate [to replace Naoto Kan as Prime Minister] is Yoshiko Noda, the finance minister, but as to who is most likely, that is still very hard to tell," Takuji Okubo, chief Japan economist at Societe Generale, told CNBC.
Jesper Koll, MD & Head of Japanese Equity Research at JPMorgan Securities believes Seiji Maehara, who is in the running to succeed PM Naoto Kan, would be good for corporate Japan.
"As far as I can see, this deal is specifically aimed at providing support for companies that have suffered through the strength of the yen. That seems a far more sensible thing to do then actually try and take on the strength of the yen itself," Simon Derrick, chief currency strategist at BNY Mellon, told CNBC.
Dan Slater, Director, Corporate Network, Japan at The Economist Group says political problems and a looming nuclear crisis are hampering Japan's reconstruction progress.
Richard Yetsenga, Global Head of FX Strategy at ANZ believes that yen is a good currency trade at the moment.
Mansoor Mohi-uddin, Chief Currency Strategist at UBS Investment Bank warns that commodity currencies are set to suffer on further investor risk aversion.
Investors are hungry for good news from today's FOMC meeting. Here's what Ben Bernanke can — and can't — deliver.
International intervention in foreign exchange markets may only give brief respite to countries that are fighting an "unwinnable war" against currency appreciation, analysts told CNBC.com.
Mark Hibbs, MD & Porfolio Manager at Gen2 Partners Japan KK, expects the Japanese government to keep on interneving in the currency markets in order to lessen pressure on the Yen.