Yen Hits Lows Against Euro and Greenback

28 November 2013 6:00:00 AM

By: DailyForex.com

The Japanese Yen struck new lows versus its major rivals, the U.S. Dollar and the common currency Euro during the Asian trading session and is poised to record the worst single month’s performance during this year. Investors have consistently used the Yen as a carry trade funding currency given that the Bank of Japan is committed to maintaining its current monetary policy in order to stimulate the flagging economy; that commitment was reiterated yesterday when one board member commented that they should consider additional stimulus measures if price growth and the economy deviate too sharply from the BOJ projections. A depreciating Yen would considerably help the export-driven economy.

As reported at 10:30 a.m. (JST) in Tokyo, the USD/JPY pair had traded at a high of 102.00 Yen, a level not seen since late May 2013, while the EUR/JPY had inched close to the June 2009 peak of 139.00 Yen. Recently, the USD/JPY was trading at 102.27 Yen and the EUR/JPY was trading at 138.83, approaching resistance at 139.26 Yen. Both the greenback and Euro have gained nearly 4% on the Japanese Yen during the month of November.

Consumer Confidence Lifts Greenback

The U.S. Dollar got a boost from unexpectedly improved consumer confidence data, despite tepid trading in the U.S. with the Thanksgiving holiday. Gains, however, were tempered by a decline in capital goods’ purchases by businesses which indicated that the fourth quarter growth may have slowed. Analysts said that given the mixed data, investors will likely find it even more difficult to gauge the Fed’s intentions regarding tapering plans.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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