Currency: yen and yuan in trampolining

At Wednesday's currency market it was especially Asian currencies, which attracted attention. Both the Chinese yuan and the Japanese yen gave it as a spring gymnasts against the dollar and the two currencies internal balance of power could clearly be read in the Japanese central bank support programs.

The Chinese yuan lay heavily against the dollar up to the night's publication of PMI from HSBC, a business confidence index for the industry. HSBC index is independent and has preponderance in the private sector, and the figures are therefore the most accurate for business confidence in China.

HSBC figures are probably one of the best indicators we have of China, and there is much nervousness towards China at the moment. So it may very well affect the foreign exchange market. Especially since the last figures we saw were the lowest since the financial crisis started.

If the bad trend continues, it will greatly infect the market and be positive for the dollar. Wednesday afternoon a dollar was down and cost 6.3110 yuan, after remaining stable at around 6.3200 yuan since Tuesday afternoon. The night between Monday and Tuesday the rate peaked at 6.3295 yuan per U.S. dollar.

The Japanese yen also drew a lot of attention as the Bank of Japan somewhat surprisingly joined on the field with further measures to stimulate the economy in the world's third largest economy. The central bank increased the fund with 10,000 billion yen - or almost 25 percent - For a total prize pool of about 55,000 billion. While interest rates were maintained at between 0.00 and 0.10 per cent.

Shortly before the central bank's intervention Wednesday morning a yuan cost 12.440 yen. Two hours later it was blown up in price 12.540, before the afternoon European it time fell back to a rate of 12.455.

Yen has taken some very large fluctuations today (Wednesday) and it is clearly a trigger that the Bank of Japan pumps so many more yen into the existing program.

A dollar cost on Wednesday morning 78.67 yen, while the central bank's intervention sent prices sharply up to 79.21 yen per dollar. In the afternoon yen strengthened, however, again, and was traded onto the afternoon at a price of 7.63 against the dollar.