The US Dollar edged higher against the Japanese Yen after earlier moving near to a 1-month peak after investors’ sentiment soured. The latest news that has investors worried comes out of Germany after share prices in Deutsche Bank fell in the aftermath of the massive fine imposed by the US over sales policies of securities backed by mortgages. Bloomberg news reported that several hedge funds which use Deutsche Bank to clear derivative trades withdrew a portion of their excess cash held.
As reported at 10:06 am (JST) in Tokyo, the USD/JPY was trading at 101.154 Yen, a gain of 0.07%; the pair’s daily range was from a low of 100.9700 Yen to a peak of 101.2400 Yen. On Thursday, the pair had hit a low of 101.845 Yen, and Tuesday it neared a 1-month peak at 100.085 Yen. The EUR/JPY is nearly flat at 113.4335 Yen, down 0.028%.
Yen on Track for 3Q Rise
The Yen is bouncing well away from yesterday’s low and is approaching the 1-month peak struck earlier this week. Analysts say that the Yen’s 2% gain thus far in the quarter is a result of investors’ collective belief that the Bank of Japan is unable to effectively weaken the Yen, despite its ongoing and aggressive efforts. The Yen is expected to close out this quarter with its third straight gain.