U.S. Dollar Dips Slightly in Tokyo
The U.S. Dollar fell slightly against the Euro in afternoon trade on Friday in Tokyo while choppy against the Yen. The U.S. Dollar fell against the Yen immediately following the Japanese government’s release of stronger than expected real Gross Domestic Product data for the first quarter ending March, but the drop was limited, as overseas fund managers and other investors came to its rescue.
On May 16, 2008, at 12:16 pm (03:16 GMT), the U.S Dollar traded at 104.67 Yen compared to 104.78 Yen, while the Euro traded at $1.5470 compared to $1.5460 in early trading in Sydney.
Investors’ concerns about the liquidity crisis and the U.S. Dollar appear to be easing, and as such, the short term outlook of the U.S. Dollar has improved. The U.S. Dollar fell to a low of 104.57 Yen following the announcement by Japanese authorities that its economy grew by 0.8% in real terms during the first quarter, or by 3.3% on an annualized basis, as a result of exports to developing countries such as China. According to investors, the higher than expected Gross Domestic Product figures confirms the resilience of the Japanese economy, which prompted investors to buy Yen. However, the Gross Domestic Product figures were not high enough to warrant further buying of the Yen.