By: Barbara Zigah
In Asian trading today, profit-taking investors helped the U.S. Dollar rise against the Japanese Yen; as reported at 1:51 p.m. (JST) in Tokyo, the U.S. Dollar was trading against the Yen at 84.25 Yen. Last Friday, the greenback fell to 84.12 Yen, a new 5-month low, once the rumors of an intervention by the Japanese Ministry of Finance fizzled out, as no confirmation was forthcoming. The U.S. Dollar is expected to run into some selling pressure in the coming days, with the approach of Japan’s fiscal half year point later in the week. However, some market players suggest that the pressure might be tempered by today’s Yen sales after the simultaneous launch of several new mutual funds in Japan.
The U.S. Dollar Index, which measures the greenback’s value versus a basket of major currencies, rose to 79.404 .DXY, a .1% gain; on Friday, the Dollar Index slipped to 79.25 .DXY, the lowest point in nearly 8 months.
This week, market players will keenly watch the Euro, and a cautionary tone is likely to prevail given the expiration of several ECB tenders later this week. On September 30th, several European banks will decide whether to repay or roll-over the ECB tenders; repayment would suggest cautious optimism.
In Tokyo Trading, U.S. Dollar Edges higher, up off 5-month trough
Barbara Zigah