The Japanese Yen continues to push higher against the. U.S. Dollar in Asian trading, and some market players are speculating that the G7’s resolve to prevent further Yen appreciation may be put to the test later today. According to traders, there is a back-log of U.S. Dollar selling offers, with heavy interest at around 82.00 Yen.
Some players believe the offers are likely substantial enough to trigger G7 intervention and speculation is that the Bank of Japan’s goal is to keep the greenback from falling below 80 Yen. As reported at 1:40 p.m. (JST) in Tokyo, the U.S. Dollar was trading against the Japanese Yen at 80.98 Yen; a session low earlier struck 80.90 Yen. The Japanese Yen was higher on major crosses; against the Euro it gained 0.1% to trade at 115.17 Yen.
Japanese Yen May Push Higher, Intervention Likely
Barbara Zigah
By: Barbara Zigah
The Euro is holding steady against the U.S. Dollar, trading at $1.4221 within striking distance of Monday’s high of $1.4241 on the EBS trading platform. Investors are now eyeing November’s peak of $1.4283, though some resistance is expected. One analyst noted that the U.S. Dollar’s weakness is linked to investor speculation that the Fed’s current loose policy and low interest rates will endure for sometime. The U.S. Dollar Index, which measures the greenback’s strength versus a weighted basket of currencies, was recently steady at 75.410 .DXY; earlier in the week it struck a 15-month low.