By: Barbara Zigah
With investors unwinding long Yen positions in advance of this week’s policy meeting in Japan, the U.S. Dollar gained versus the Japanese currency in Asian trading; most investors don’t see any real surprises coming out of the meeting, however.
As reported at 2:48 p.m. (JST) in Tokyo, the U.S. Dollar traded against the Japanese Yen at 83.61 Yen, up from Friday’s late trading in New York of 83.32 Yen. Short positions in the U.S. Dollar, meanwhile, appear to be mounting, as speculation also grows that the U.S.
Federal Reserve Bank may resume their quantitative easing policy in an effort to boost the sluggish American economy. On Friday, a report showing that growth in the U.S. manufacturing sector slowed in September was released; two Federal Reserve policymakers commented that unless the economic outlook in the U.S. begins to improve, more action on the part of the Fed will be necessary.
The Euro also rose against the Japanese Yen, trading at 115.05 Yen, a .2% rise in the day’s trading. Versus the U.S. Dollar, the Euro slipped .2% to trade at $1.3760, however it retained most of the 1% gains it made from Friday.
One forex strategist in Singapore suggested that the Euro remains the only substitute to the greenback for diversion of forex reserve, in spite of the major economic worries within the Eurozone.