By: Barbara Zigah
Returning earlier gains, both the U.S. Dollar and the Japanese Yen declined in Asian trading today, as the volatility of China’s share prices rose, prompting investors to move back into commodity-linked, high yielding currencies. Currencies typically higher yielding, such as the Australian and New Zealand Dollars, have seen a great deal of movement as a result of the volatility on the Shanghai exchange; investors are watching China closely in an effort to determine whether or not China can help the global economies move out of the recession.
As reported at 3:03 p.m. (JST) in Tokyo, the Euro traded at $1.4305 against the U.S. Dollar, holding relatively steady; however, against the Yen, the Euro traded at 134.77 Yen, a gain of .1% from yesterday’s late trade in New York. The Yen slipped versus the Australian Dollar, trading at 78.90 Yen, a loss of .4% though it had traded at 78.24 earlier in the day, following a drop in crude oil yesterday. The Australian Dollar also did well versus the greenback, trading at $0.8373, a rise of .4%.
Analysts suggest that investors will continue to watch the Shanghai markets, but are also waiting for additional positive data out of the United States to support the opinion that the American economy is improving. Specifically, investors are hopeful that consumer confidence will show continuing signs of improvement.
On Continued Shanghai Volatility, Dollar and Yen Slip
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.