On Monday JPY fell after the dismal Japanese economic data intensified worries about the severity of the downturn facing the country. Japan swung to its first current account deficit in 13 years in January as the global economic decline crushed export demand and revenue from overseas investment. According to the specialists’ opinion, the JPY is likely to remain weak since the Japanese authorities have indicated that they want the currency to weaken. At the same time equity market falls caused the EUR to dip against the USD 0.1% to $1.2627 that took euro to its lowest level vs the dollar in more than three months last week. European shares quickly turned firmly into negative territory to trade down 1.0% on renewed banking sector concerns. Lloyds led banking shares down after it said that the UK government would get a stake of up to 77% in the bank after agreeing to underwrite £260 billion of risky assets. At 0844 GMT, the dollar rose 0.3% against the yen to 98.67 yen, while the euro also rose 0.2% to 124.59 yen. The GBP is 0.7% down at $1.3982 and the AUD is also down 0.4% at $0.6379.

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