Fed chair Bernanke says that the rising savings rate in the US is helping to close the US current account deficit and thus the amount of money borrowed from abroad to finance the fiscal deficit.This is a dollar plus, with some analysts thinking the savings rate rise alone is enough to fund the extra government borrowing.
USD/JPY continues to give ground, slipping back below the 93.50 level after filling in bids there. 93.25 is technical support. We trade now at 93.42. Sliding US yields are contributing to the USD/JPY weakness. The 10-year note is down 14 bp in yield from 3.61% yesterday to 3.47% today.
