The yen is rising
The yen rose against most major currencies due to speculations that the Japanese bank will not be able to influence the depreciation of the currency.
The yen rose to its highest value since 31 October when the Bank of Japan made the largest intervention.
This week the euro registered its highest levels after yesterday the Italian Prime Minister Silvio Berlusconi offered to resign. This created optimism that a new Italian leader can do more to tackle the debt crisis.
The Australian dollar decreased right before a report on the unemployment in October.
The dollar fell to 77.54 against the yen and traded a few pips from this level. “Over the next few days I expect dollar-yen to reach 77,” said Callum Henderson, an analyst with Standard Chartered Plc.
The intervention made by the Japanese bank was massive, but short, adds the currency analyst.
Earlier this morning, the euro also recorded losses against the Japanese currency. One euro was traded at a level of 107.20, compared to 107.50 late yesterday.
However, the demand for the single currency against the dollar is limited because of the uncertainty about whether there will be a solution to the debt crisis.
The dollar rose 4.8% in the last three months and performed the best among the 10 major currencies in developed countries.
For the same period of time, the yen has risen by 2.2%.
The dollar tends to become more expensive in times of financial instability, because the currency is in reserve.
The yen rose against most major currencies due to speculations that the Japanese bank will not be able to influence the depreciation of the currency.
The yen rose to its highest value since 31 October when the Bank of Japan made the largest intervention.
This week the euro registered its highest levels after yesterday the Italian Prime Minister Silvio Berlusconi offered to resign. This created optimism that a new Italian leader can do more to tackle the debt crisis.
The Australian dollar decreased right before a report on the unemployment in October.
The dollar fell to 77.54 against the yen and traded a few pips from this level. “Over the next few days I expect dollar-yen to reach 77,” said Callum Henderson, an analyst with Standard Chartered Plc.
The intervention made by the Japanese bank was massive, but short, adds the currency analyst.
Earlier this morning, the euro also recorded losses against the Japanese currency. One euro was traded at a level of 107.20, compared to 107.50 late yesterday.
However, the demand for the single currency against the dollar is limited because of the uncertainty about whether there will be a solution to the debt crisis.
The dollar rose 4.8% in the last three months and performed the best among the 10 major currencies in developed countries.
For the same period of time, the yen has risen by 2.2%.
The dollar tends to become more expensive in times of financial instability, because the currency is in reserve.
