By: Barbara Zigah
The common currency Euro gained versus the U.S. Dollar in Asian trading today, trading at $1.2667 up slightly from yesterday’s late trade in New York of $1.2627. Versus the Japanese Yen, the Euro moved from 117.69 Yen to 118.00 Yen, as reported at 2:50 p.m. (JST) in Tokyo. Most of the gains were attributed to Euro purchases from Asian hedge fund operators with the perception that the fiscal woes in the already troubled Euro-zone nations should not worsen over the short term.
Investors and analysts alike don’t believe that the common currency will continue to rise, given that there is still so much uncertainty as to whether or not the Greek rescue plan – right now only in the framework stages – can be successfully implemented. A senior foreign exchange dealer in Japan noted that the current trend is against the Euro, and that the European Central Bank essentially has its “hands tied” as regards interest rates within the Euro zone, given the weakness in the Euro-zone economies.
The safe haven U.S. Dollar gained versus the Japanese Yen, trading at 93.20 Yen, up from the 93.17 Yen late trade in New York yesterday. The greenback’s attraction from Japanese investors is likely the result of higher yields on U.S. Treasuries.