With Yuan Focus Waning, U.S. Dollar and Japanese Yen Steady in Asia

By: Barbara Zigah

The U.S. Dollar and Japanese Yen both steadied in Asian trading as the focus on the new Chinese Yuan policy appears to be ebbing. Meanwhile, the common currency Euro and other high-yielding currencies slipped in trading as investors seem to have had their fill of high risk assets for the time being. As reported at 2:42 p.m. (JST) in Tokyo, the U.S. Dollar was trading against the Euro at $1.2271; the Japanese Yen was trading against the Euro at 110.96 Yen. The Australian Dollar, another high-yielding currency, slipped against the U.S. Dollar to $0.8709, a loss of .1% and off of the 1-month peak of $0.8860 struck earlier in the week.

Investors suggest that a fall in stock prices in the U.S. followed by the Nikkei’s subsequent drop helped prop up the U.S. Dollar and Japanese Yen, favored currencies when investors become risk averse. The recovery of the global economies is also of concern to investors, and one forex strategist at a bank in Japan believes that in the near term there will be renewed pressure on the Euro, which might all below $1.2000 or even $1.1900; support for the Euro is closely pegged near $1.2255.