Dollar Struggles In Tokyo
The US Dollar struggled in Tokyo’s trading last December 15 after plunging a day earlier due to trade deficits. According to Reuters, the market braced for more short-covering that had boosted the Yen to its steepest one-day rise in nearly four years when the U.S. currency fell by more than 2% against the Yen on December 13, 2005.
Other currencies who well against the Yen include the Euro who suffered its worse one-day fall versus the Yen since July at 1.6%, together with the New Zealand Dollar, Australian Dollar, Canadian Dollar and British Pound.
With the market open for more dollar selling and prone to react sharply to weaker data than strong data, the dollar is firmly capped with lots of sell orders that more than offset dip buying by Japanese importers and investors, who had been borrowing the Yen for almost no cost yet selling it to buy high-yielding currencies in carry trades.
(Highlights of Dollar Struggles After Record Trade Deficit, Reuters South Africa Website)
Other currencies who well against the Yen include the Euro who suffered its worse one-day fall versus the Yen since July at 1.6%, together with the New Zealand Dollar, Australian Dollar, Canadian Dollar and British Pound.
With the market open for more dollar selling and prone to react sharply to weaker data than strong data, the dollar is firmly capped with lots of sell orders that more than offset dip buying by Japanese importers and investors, who had been borrowing the Yen for almost no cost yet selling it to buy high-yielding currencies in carry trades.
(Highlights of Dollar Struggles After Record Trade Deficit, Reuters South Africa Website)
posted by creditinfo at 1:45 AM
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