Archive for February, 2012
FOREX-Euro firm vs dlr ahead of ECB cash boost
The euro traded close to a three-month high against the U.S. dollar on Tuesday ahead of an injection of cheap cash from the European Central Bank that looked set to boost risk appetite and fuel short-term gains in the single currency.
It also advanced against the yen, although it stayed well below a four-month peak hit on Monday. The yen pulled away from a nine-month low against the dollar reached the day before on month-end buying by Japanese exporters, but short-covering by hedge funds saw it relinquish some of those gains.
Currency investors shrugged off news that Standard & Poor’s had cut its ratings on Greece to “selective default” as moves by Athens to lighten its debt burden had been expected to trigger such a downgrade.
The euro also showed little reaction to the ECB’s temporary suspension of Greek bonds as collateral for its funding operations, and a solid Italian debt auction. Read the rest of this entry »
Tags: bank of tokyo mitsubishi, credit default swaps, credit default swaps market, greek bonds, reuters pollDollar Slips Against Yen, Market Awaits LTRO
The dollar continued to slip against the yen during Asian trading Tuesday as investor profit taking and month-end exporter selling of the currency put the brakes on its recent rally.
The yen’s weakness following the Bank Of Japan’s easing of its monetary policy has seen it hit a near nine-month low of Y81.66 against the greenback Monday, but the currency regained some of its strength, hitting Y80.28 as of 0450GMT from Y80.60 late Monday New York trading, according to trading platform EBS.
Kengo Suzuki, forex strategist at Mizuho Securities said the dollar/yen has been climbing too high as of late, and said he expected the greenback to begin trading against the yen in a lower range in the near term. Read the rest of this entry »
Tags: bank of tokyo mitsubishi, european commission president, european commission president jose manuel barroso, greece issue, jose manuel barrosoFOREX-Yen helped by Japan exporters month-end trades
The yen on Tuesday pulled away from a 9-month low plumbed the day before on month-end buying by Tokyo exporters, although short-covering by hedge funds forced it to relinquish some early gains, traders said.
A record trade deficit, shrinking current account surplus and surprise policy easing by the Bank of Japan have combined to trigger what is set to be — despite an apparent correction kicking in — the yen’s sharpest monthly drop in more than two years.
While traders think the weak yen trend would continue, for now the dollar was down 0.2 percent at 80.44 yen, slipping from the peak of 81.66 yen hit the day before.
It briefly fell as low as 80.01 yen, but managed to bounce back, supported by dollar-buying by Japanese investors unwinding their currency hedges. Read the rest of this entry »
Tags: bank of tokyo mitsubishi, bank of tokyo mitsubishi ufj, japanese importers, record trade deficit, tokyo mitsubishi ufj