Market News

With investors worried that the Bank of Japan will again intervene to curtail the meteoric rise of the safe haven currency, the Japanese Yen has steadied against the U.S. Dollar in Asian trading.

Earlier today, it was reported that the Bank of Japan had intervened in the currency, sending the safe haven 5.1% lower against the U.S. Dollar to 79.49 Japanese Yen. As reported at 5:40 a.m. (GMT), the USD/JPY pair was trading lower at 75.8250.

A relief rally in Asia drove the Euro to a 7-week peak in early trading, though the single currency has since beat a slight retreat.

Now that the Eurozone’s leadership have finally reached an accord which calls for, among other things, a 50% write-down of private Greek bondholder debt the common currency struck a 7-week high against the U.S. Dollar in Asian trading.

Traders had, up until recently, been hopeful that the leadership was finally in the process of taking serious measures to address the growing fiscal problems. But that hope was dashed yesterday afternoon.

In Asian trading, the Euro slipped against the U.S. Dollar but remains close to a 6-week peak struck on Monday.

Hopes that the Eurozone’s leadership has moved closer to finding resolution to the debt crisis plaguing the region has given the Euro some support, though the single currency did slip lower versus the U.S. Dollar on some light profit taking.

A deep divide among the Eurozone’s policymakers has put pressure on the common currency during the Asian trading session, though the Euro has held hard to earlier gains the outlook appears rocky.

Ongoing doubts over the Eurozone’s policymakers’ ability to create a plan which will help to stop the Eurozone crisis are putting significant pressure on the common currency

The Euro gained some ground in the Asian trading session after taking a fall on Monday when Germany's policymakers threw cold water on a quick resolution to the Eurozone crisis.

The common currency continues to hold onto most of last week's gains and is poised for more as investors pinned their hopes on the European Union's policymakers, that a decisive response to the Eurozone's debt worries will be addressed later this week.

S&P, the ratings agency, downgraded Spain’s sovereign debt, a move which effectively put fear back into the markets that the Eurozone’s contagion was, indeed, spreading.

The single currency moved higher against the U.S. Dollar in late Asian trading and remains steady near a 1-month high struck yesterday.

After the Slovakian parliament rejected the amendment which would bolster the firepower of the Eurozone’s emergency fund, the EFSF, the common currency fell broadly in Asian trading, reversing much of the gains made in the recent corrective rally.

In Asian trading, the Euro held onto Monday’s gains as hope for a comprehensive Eurozone debt plan continues to gain momentum.