By: Barbara Zigah
In Forex trading in Asia today, the Japanese Yen and the U.S. Dollar both made gains against the single currency Euro as weak regional shares in the Nikkei, Shanghai and other Asian markets prompted short term market players and Asian hedge funds to sell off their risk sensitive currencies.
As reported at 1:50 p.m. (JST), the U.S. Dollar rose against the Euro from $1.3762 in Friday’s New York trading to $1.3739. Versus the Japanese Yen, the Euro traded at 124.50 Yen, as compared to Friday’s New York trade of 124.57 Yen. A senior Forex manager in Tokyo suggested that investors may be anxious to reap the profits of Friday’s gain in the Euro, believing that the single currency will likely trend lower this week unless detailed information about a Greek rescue package is offered; it was further suggested that the Euro could drop to $1.3680 and 124.00 Yen in today’s trading session. The E.U. Finance Ministers meet later today for a regularly scheduled monthly meeting.
As reported at 1:50 p.m. (JST), the U.S. Dollar rose against the Euro from $1.3762 in Friday’s New York trading to $1.3739. Versus the Japanese Yen, the Euro traded at 124.50 Yen, as compared to Friday’s New York trade of 124.57 Yen. A senior Forex manager in Tokyo suggested that investors may be anxious to reap the profits of Friday’s gain in the Euro, believing that the single currency will likely trend lower this week unless detailed information about a Greek rescue package is offered; it was further suggested that the Euro could drop to $1.3680 and 124.00 Yen in today’s trading session. The E.U. Finance Ministers meet later today for a regularly scheduled monthly meeting.
In the United States, the Federal Open Market Committee will meet on Tuesday, and market analysts suggest that if interest rates continue to remain unchanged at their current low levels over an extended period of time, the U.S. Dollar may soften versus the Yen. The U.S. Dollar Index, which measures the greenback’s strength versus a basket of six major currencies, traded at 79.927 .DXY, off from Friday’s trading in New York of 79.818 .DXY.