Forex U.S. Dollar Dips versus Yen/Euro

By: Barbara Zigah
Ahead of the policy meeting for the U.S. Federal Open Market Committee (FOMC), investors in the U.S. Dollar trimmed their long Forex positions resulting in the U.S. currency’s decline versus the Japanese Yen and common currency Euro. The FOMC meeting opens today in Washington and analysts expect little change to the current policy of low interest rates, though there have been some dissention among their ranks of late. Recent economic indicators have been mixed, and the consensus among Forex analysts is that there is still considerable room for improvement.

As reported at 1:22 p.m. (JST) in Tokyo, the U.S. Dollar Index, which is a measure of the currency’s performance versus a weighted basket of currencies, slipped to 80.12 .DXY, a decline of .1%, with resistance being seen near 80.85 .DXY. Versus the Japanese Yen, the U.S. Dollar traded at 90.06 Yen, a loss of .5%; the U.S. currency also lost .1% versus the Euro, trading at $1.3690, off of yesterday’s New York high of $1.3639.

Any gains made by the EUR versus the USD were limited in scope; and the single currency continues to experience selling pressure against the JPY in light of the current fiscal problems in Greece and the lack of a concrete aid package.