Exporters' Buying Pushes Yen Higher

Barbara Zigah

By: Barbara Zigah

The Japanese Yen, which had fallen to a one-month low earlier this week, edged higher against the U.S. Dollar helped by exporters’ month-end buying spree. The Euro also held onto the recent gains made against the U.S. Dollar, the aftereffect of the Fed’s commitment to keep interest rates near zero through 2014. Following the Fed’s announcement on Wednesday night, the Euro rose to a 5-week high against the greenback, as markets were generally taken by surprise by the Fed’s posturing, as well as a decidedly dovish leaning. Analysts expects that the U.S. Dollar might see some more selling but the underlying problems in the Eurozone will, sooner rather than later, put pressure back on the Euro.

As reported at 12:09 a.m. (JST) in Tokyo, the U.S. Dollar slipped to a low of 77.26 Japanese Yen before recovering to 77.40 Japanese Yen; earlier this week, the U.S. Dollar touched on a 2-month peak against the Japanese currency, trading at 78.29 Japanese Yen. The Euro traded against the U.S. Dollar at $1.3106, retreating from a high of $3.184 struck on Thursday. Analysts point out that it wasn’t able to breach major resistance which is set around $1.3200. In the week thus far, the Euro has gained some 1.8% against the U.S. Dollar.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

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