These reports will support the euro by holding it above $1.19 against the dollar for the time being.

Demand for the dollar will likely remain strong through December, particularly with the bonus season bolstering Japanese retail buying.

Japanese investors have just started kicking in offshore investment at the beginning of the new fiscal year. They will do so more and more from now on, weighing down the yen.

Asian economies are export driven, so their authorities will continue to worry about stronger currencies. There's a growing concern about intervention.

The reform plans lack necessary details, but support for Koizumi is still wildly high. We sense the market will firm on hopes for him once more -- least until Upper House elections in late July.

The transfer of the shares in the whaling firm will not affect our policies at all.