U.S. Dollar and Japanese Yen Lose Ground in Asian Trading
Today in early Tokyo trading, the Japanese Yen and the U.S. Dollar fell broadly as stock markets in the region rose on hopes that the U.S. government is planning to subsidize mortgages in the U.S. and as investors prepare for the G-7 finance officials meeting, currently being held in Rome.
The Japanese Yen usually fluctuates as investors’ risk appetite shifts. The Yen fell against the Euro and other higher yielding currencies because of the rise in Asian equities, with Japan's yardstick Nikkei share average rising by 1%.
The Euro gained 0.4% against the U.S. Dollar and traded at $1.2914 and rose by 0.4% against the Japanese Yen and traded at 117.53 Yen. The U.S. Dollar rose against the Japanese Yen in late trading in the U.S. on Thursday as stocks in the U.S. came off session lows following a report by Reuters agency that the U.S. government will establish a program to subsidize U.S. mortgages. However, the U.S. Dollar did not gain higher today amid concerns that Japanese exporters are selling the U.S. Dollar, and traded at 90.97 Yen.