US Dollar Falls To The Lowest Level Against Japanese Yen Since World War II
Richard Leong reported on Reuters.com that US Dollar hit a record low against the Japanese Yen on the speculation that Europe was about to solve its debt problems. But many market analyst doubt that the policy makers will produce a comprehensive plan soon.
Deborah Levine and William L. Watts reported on Marketwatch.com that US Dollar dropped to the lowest level against the Japanese Yen since World War II. USDJPY currency pair is now trading at its lowest level. US Dollar dropped as low as 75.76 against the Japanese Yen. The move gave the Dollar a loss of 1.4% against the Japanese Yen during this week. This is the biggest weekly decline since mid August.
The US Dollar Index DXY which tracks the US Dollar against a basket of six major currencies that includes Euro and the Yen fell from 76.982 to 76.404 on Thursday this week. The US Dollar fell further against the Euro and the other major currencies after it fell to its record low against the Japanese Yen.
Market analyst are attributing this fall to the market hitting the key levels that triggered the selling of the greenback. More general unwinding of the positions is expected ahead of key meetings in Europe. Even though the Sunday summit of the European Union Leaders is not expected to produce a far reaching plan to help resolve EU’s debt and banking crisis but the euro still gained against the Dollar. However, the European leaders have promised a plan will emerge from a subsequent summit to be held soon.
The Marketwatch.com article reported that there is a lot of Dollar selling across the board as the market participants are diversifying from the greenback given the optimism surrounding the EU summit meeting to be held during this weekend. The Japanese Yen hit some key levels during the week that triggered the stop loss orders forcing the reversal of those positions. Meanwhile Reuters.com reported that Japan’s Finance Minister said on Saturday that he would take decisive action against the excessive and speculative moves made by Yen. He threatened to conduct currency intervention after the yen moved to a recorded high against the Dollar.Continued on the next page