By: Barbara Zigah
In Asian trading today, the common currency Euro traded higher against the U.S. Dollar in spite of continuing investor concerns over escalating Eurozone debt problems. As reported at 2:36 p.m. (JST) in Tokyo, the common currency traded against the greenback at $1.3250, a .1% rise on the day and an extension of yesterday’s rebound from a $1.3164 low struck on the EBS platform.
Traders noted that since Monday, the intra-day highs for the Euro have steadily lowered, an indication that the currency is in imminent jeopardy of a drop, and some traders are predicting that the Euro will slip back to $1.2970, the December low, before the month is out. The Eurozone debt problems will continue to pressure the common currency, but it appears that Ireland’s problems, even the recent sovereign debt downgrade, are no longer having a significant impact on it. Larger Eurozone economies, most especially Spain, present the largest worry to investors.
The Japanese Yen also moved higher on the greenback, trading at 83.69 Yen, though remaining within striking distance of the 83.51 Yen high struck on the EBS platform after yesterday’s U.S. 30-year treasury auctions. Most traders believe that the Yen will likely trade within the 83.50 to 84.50 Yen range for the time being, as the U.S. Dollar appears unable to break through the 84.40 Yen resistance level.