U.S. Dollar Touches on 3-month High versus Japanese Yen

In early morning trading in London today, the U.S. Dollar touched on a 3-month high versus the Japanese Yen while investors continue to shed the Japanese currency in the face of continued persistent worries about financial institutions.  According to a currency strategist at UBS, the markets have basically stopped looking to the Japanese Yen as a “safe” currency, amid continued concerns and deteriorating confidence in the faltering Japanese economy.   

In the United States, recent initiatives by the U.S. Federal government and the Obama administration to jumpstart the U.S. economy and aid U.S. financial institutions and give the U.S. housing sector a boost did not have the hoped for outcome.  On Monday, the Federal Reserve Bank, United States Treasury Department and three other agencies jointly reported that a program would be initiated on Wednesday which would assess the capital needs of larger U.S. banks in an effort to determine whether still more funding is necessary.  Nonetheless, the perception is that despite the status quo, the U.S. Dollar is still the better alternative.

At 09:05 a.m. (GMT) in London, the U.S. Dollar remained close to a 3-month high, trading at 95.66 Yen.  The U.S. Dollar Index, which measures a basket of major currencies versus the U.S. Dollar, remained steady at 87.263. DXY.