Market News

The Japanese Yen slipped to a 2-week low versus the U.S. Dollar in Asian trading today, as higher share prices in Asian markets triggered investors’ risk appetite,

The Japanese Yen slipped in Asian trading as the government of the People’s Republic of China reaffirmed its current loose monetary policy and Asian share prices rose, all of which served to increase investors’ appetite for risk. Adding to the Yen’s decline against the U.S. Dollar was the news that Japan’s central bank is considering additional easing measures to stimulate the Japanese economy.

Higher yielding currencies declined in Asian trading today as investor concern over the pace of economic recovery in Euro-zone nations reduced demand. Versus the U.S. Dollar,

The U.S. Dollar fell broadly in Asian trading today, dropping to its lowest points in several months versus several currencies. As reported at 1:02 p.m. (JST) in Tokyo, the greenback slipped against the Japanese Yen to 88.67 Yen, a decline of .2%; earlier in the trading session on the EBS platform, it had fallen to 88.47Yen, the lowest price in more than 2 months.

After seeing the pound collapse yesterday, traders can be a bit more optimistic today with the RBA raising rates to 4% and releasing a statement that has a optimistic outlook on the global recovery.

The Australian Dollar retreated in Asian trading today, trimming gains made immediately following the announcement by the Australian central bank that a key interest rate would be raised to 4.0%, up from 3.75%.

The U.S. Dollar rose to a new 9-month peak versus the struggling Pound Sterling in Asian trading today, with the British Pound also trading down against the Japanese Yen. The Pound Sterling was trading at $1.5129 at one point in the day’s session, a 9-month low; this year alone, it has lost better than 6% against the greenback. Versus the Japanese Yen, the Pound traded at 134.50 Yen, its lowest price in nearly a year.

Despite a decline during the Asian trading session, the Japanese Yen managed to hold on to gains made on Thursday; the safe haven currency was bolstered by continuing investor concerns over mounting fiscal problems in Euro-zone countries and doubts over the pace of the worldwide economic recovery. Also helping the Japanese Yen was repatriation of the currency by Japanese importers in advance of the month’s end.

The single currency Euro fell to a new 1-year trough in Asian trading today, attributed largely to continuing investor concerns over the Euro-zone’s fiscal problems, and a round of selling by Japanese exporters, which triggered the fall.

Investor risk aversion following yesterday’s release of worse-than-expected consumer confidence data from the United States, helped to prop up the Japanese Yen, considered a “safe haven” currency

The U.S. Dollar traded within narrow ranges in Asian trading today, as traders await the Federal Reserve’s report to the U.S. Congress tomorrow. Some investors are speculating that Ben Bernanke, the Federal Reserve Bank Chairman, would quash rumors of possible monetary tightening, and have avoided the U.S. currency as a result.

In Asian trading today, the U.S. Dollar Index fell as investors continue to debate the U.S. Federal Reserve’s fiscal strategy, especially as regards the possibility that a key interest rate hike may occur sooner than expected.

In an oddly timed move, the U.S. Federal Reserve Bank directed that the U.S. discount rate, which is the rate at which the Federal Reserve lends to privately held U.S. banks, be raised to .75%, an increase of .25% effective Friday, the 19th of February.

The Fed raising its discount rate by 25 basis points to .75% shocked the markets earlier today. The US dollar after weakening during early US trade, promptly rallied at the news. The Fed appears to be making good on its word about starting to remove the excess stimulus measures from the economy. The prospect of the US hiking rates before the EU and other major developed countries has made investors dollar bullish. This change in sentiment can be seen in the USD/JPY as the pair reached a new high of 92.10 upon the news.

A recent report from The Wall Street Journal newspaper which suggested that the fiscal worries in Greece could spill over to other areas within the Euro-zone, precipitated the Euro’s fall in Asia today. Late last night, it was reported that some Italian municipalities took out derivative contracts, which if substantiated, could threaten public finances.