The Japanese Yen gained broadly in Asian trading today as exporters from Japan sold off their holdings in the U.S. Dollar and the common currency Euro to settle their accounts for the month’s end.
Unsurprisingly, given the Eurozone’s various crises over the past several months, the common currency is on track to record its worst quarter in better than a year.
The Euro continues to cling to recent gains against the U.S. Dollar, holding steady above the 8-month trough struck earlier in the week.
The common currency crawled back from an 8-month low against the U.S. Dollar on short-covering by investors following the news that the Eurozone’s key policymakers are considering efforts to shore up the European Financial Stability Facility.
Disappointment in what they already perceive as an insufficient response to the Eurozone crisis, in the Asian trading session, investors have pushed the Euro close to an 8-month low against the U.S. Dollar.
Profit takers are helping to push the common currency higher against the U.S. Dollar following the Euro’s 8-month low struck in the previous trading session.
It’s the move everyone’s been talking about – yesterday’s Federal Reserve announcement that it will reduce borrowing costs in order to hasten economic growth. Equally newsworthy is the downgrade by Moody’s of 3 top US banks – Bank of America, Citigroup and Wells Fargo & Co.
The U.S. Dollar rose toward a 7-month peak against other major currencies following the Federal Reserve’s unveiling of the latest weapon in their arsenal.
Hours before the Federal Reserve is expected to announce a new stimulus plan, the Dollar Index advanced for the third time in four days. The Euro also stabilized with renewed hopes that the US will lower its interest rates.
Under pressure from Japanese exporters, the U.S. Dollar slipped near to a record low versus the Japanese Yen earlier in a very choppy Asian trading session, but was able to pare losses more recently.
Once again, troubles in the Eurozone have precipitated the Euro’s tumble. Greece, of course, is at the forefront as investors worry that the country will be unable to meet its September debt obligations thus pave the way toward the approval of the next tranche payment of the emergency bailout fund.
As Greece continues fighting against its possible debt default, the Euro weakened for a second straight day against the US Dollar.
In Asian trading, the Euro slipped against the U.S. Dollar following a weekend of political setbacks in the Eurozone left the single currency on shaky ground. As reported at 2:22 p.m. (JST) in Tokyo, the Euro was trading down nearly 1% against the greenback to $1.3664; it also fell 0.8% against the safe haven Japanese Yen to 105.06 Yen.
The Euro is holding onto gains made yesterday following the extraordinary move by the worlds’ major central banks to enhance U.S. Dollar liquidity.
In spite of reassurances from Germany’s Angela Merkel and France’s Nicolas Sarkozy that the troubled Greek nation would remain a Eurozone member, the common currency is under pressure in Asia.