By: Barbara Zigah
For the second consecutive trading day, the Japanese Yen slipped broadly following the strong rebound in the global equity markets which sent investors in search of high yielding currencies. Even the struggling Euro benefited from whetted risk appetite, rising against the Yen to 113.65 Yen, an increase of .7%; yesterday, the Euro rose more than 1% against the Yen. The Australian Dollar also came off of this week’s earlier low, rising to 78.41 Yen, an increase of 1%. Foreign investors are trimming their short position in the Yen ahead of tomorrow’s release of non-farm payroll data for the month of May from the United States; analysts predict that that data will show the 5th consecutive month of gains.
As reported at 2:54 p.m. (JST) in Tokyo, the U.S. Dollar also rose higher versus the Japanese Yen, trading at 92.30 Yen, an increase of .2%. Yesterday, the Dollar rose to a 2-week peak when it struck 92.36 Yen. Support for the greenback was found following the release of housing data yesterday, which was better than analysts had expected. According to one forex manager in Europe, market players are focusing on the economic recovery in the U.S. in an effort to determine whether or not it can offset any negative impact from the Euro-zone economies.