By: Barbara Zigah
Both the U.S. Dollar and the Japanese Yen saw gains in Asian trading in Tokyo today as the dismal labor data coming out of the United States last week continues to raise investor doubts about a quick turnaround of the global economies. Last week’s U.S. jobs report showed that non-farm payrolls had more job losses than originally expected.
As reported at 9:08 a.m. (BST) the U.S. Dollar Index, a gauge of the U.S. currency versus a group of major currencies, moved up to 80.702 .DXY, an 11-day high. The Greenback was also supported by reassuring comments made by Chinese officials that they would not seek a discussion on an alternative reserve currency at the upcoming G8 summit. The Euro traded at a near 2-week low of 132.45 Yen versus the Japanese Yen, a loss of 1.3%.
Investors remain cautious in advance of the G8 meeting scheduled for later this week. Despite assurances to the contrary, investors are still wary that China will raise a debate on the issue of diversification of the reserve currency. According to one currency strategist in London, the U.S. Dollar’s position as the reserve currency will continue to be in focus until something definitive comes out of the Group of 8 meeting.
U.S. Dollar and Japanese Yen rise on continued Global Economic Concerns
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.