By: Barbara Zigah
The U.S. Dollar was higher versus the Japanese Yen in Tokyo trading today following yesterday’s small rise in 3-year Treasury yields. As reported at 1:04 p.m. (JST), the U.S. Dollar against the Japanese currency at 82.84 Yen, edging up slightly from the 82.67 Yen traded in New York late on Tuesday. Later today, markets will likely turn their collective attention to the United States where $21 billion in 10-year Treasury instruments are to be auctioned; any rise in the yield is likely to push the greenback higher to 83.00 Yen. Most market players agree, however, that any gains beyond 83.00 Yen would likely be limited today by sell orders from Japanese exporters.
The common currency Euro was also higher against the Yen, trading at 115.05 Yen, up from yesterday’s late trade of 114.96 Yen. Market players believe that the Euro will be under pressure later today as Portuguese debt is auctioned off; a poor outcome will bring the focus back to the Eurozone’s fiscal troubles.
Portugal has come under recent pressure to seek bailout assistance but the government has been steadfast in its refusal to do so. Currently, the only thing clearly supporting the Euro is speculation of an interest rate hike, possibly as soon as next month.