Market News

The Japanese Yen rallied to a 5-week high against the U.S. Dollar today as faltering global stock markets reflected investors’ continued concerns about risk and the degree of the global economic problems.

The Japanese Yen gained ground today as central banks of major currencies, such as the Pound Sterling, Euro and the Australian Dollar, are expected to cut interest rates during this week and as the result, their currencies fell.

The U.S. Dollar gained against major currencies today, rising as concerns about the extent of the breadth of the global recession on investors’ sentiment. Increased concern about risk helped push shares in Europe into negative territory, however, while low-yielding Japanese Yen surged against major currencies.

The Japanese Yen gained against the U.S. Dollar and the Euro today as market concerns about the overall cost of the huge fiscal stimulus packages announced by most central banks, and whether or not they could succeed in preventing global recession, kept the Japanese Yen, a low-yielding currency, high.

Today, ahead of measures expected to be implemented by E.U. central bank ministers to stimulate the global economies, risk aversion helped prop up the Japanese Yen, which saw some gains against higher yielding currencies such as the Euro, even while European share prices continued to struggle.

The Japanese Yen was up versus the Euro and the U.S. Dollar today as global recession worries returned to preoccupy financial markets and as a result, stocks fell as investors stayed away from riskier assets. A drop in European share prices boosted the low-yielding Japanese Yen, after optimism on news about the bailout of Citigroup by the U.S. government quickly dissipated.

On Monday, the U.S. Dollar dropped against a basket of major currencies and the Euro as risk aversion reduced following the U.S. government’s announcement of a $20 billion injection to rescue troubled Citigroup, the world’s largest banking corporation. Stocks rose in Europe, and the same time U.S. stock futures appears to point to a positive opening on Wall Street in a sign of increased risk appetite, which is attributed to the weakness of the U.S. Dollar.

The U.S. Dollar and the Japanese Yen fell today as global stock markets rebounded and on the announcement that Citibank, the largest financial institution in the United States, was contemplating a merger with another financial institution to quell market anxiety.

The Euro dropped to a one-week low versus the Japanese Yen and the U.S. Dollar today following the release of poor economic data by the Federal Reserve Bank, which underlined the critical situation of the global economic conditions, thus prompting renewed interest in lower-yielding currencies.

Today, the U.S. Dollar climbed slightly against a group of major currencies. Further, the Japanese Yen strengthened as investors continue to be apprehensive about the global economy and as a result, stock markets continue to come under downward pressure.

The Euro dropped against the U.S Dollar and the Japanese Yen today, as a stream of data showed that the global economy will continue to suffer, which kept strong demand for unwinding risky trades, as oppose to low-yielding currencies.

The U.S. Dollar ceded gains today as stock futures in the U.S. gravitated towards positive territory, but continual wariness over the worldwide economic outlook supported the U.S. Dollar and the low-yielding Japanese Yen.

The Euro gained slightly against the U.S. Dollar today following the release of data which showed that the U.S. economy is weakening. However, the Pound Sterling tumbled after the release of a bleak Bank of England forecast, which fuelled expectations that more U.K. interest rate cuts are needed.

In early trading in London, the Euro saw some gains against the U.S. Dollar and the Japanese Yen as traders focused on a rally by the Euro, reaching a near record high against the Pound Sterling.

The U.S. Dollar retreated today against the Euro, while the low-yielding Japanese Yen fell as a result of easing in risk aversion following China's announcement of a huge economic stimulus plan which boosted share prices.