Stock Market Watch

Forex Market Update: Yen Recovers against All Major Currencies, Euro Slips against the Dollar

by ·


The yen recovered sharply against all major traded currencies on Friday as market participants halted the recent sell-off after the Japanese unit failed to touch 100 to the U.S. dollar, prompting investors to cut short yen positions and book profits.

While the dollar fell as low as 98.85 yen at the start of the European trading hours, the euro slumped more than 1% against the yen. The euro had climbed to a three-year high against the yen on Thursday to trade above yen 130 level

“The market has tried three times to break the 100 yen level and it hasn’t happened, so we’re now seeing a lot of speculators take the other side of the trade and close positions ahead of the weekend,” said Peter Kinsella, a senior foreign-exchange strategist at Commerzbank, according to the Wall Street Journal.

However, the yen pared gains and was last trading at 99.27 to the dollar.

Meanwhile the euro slipped against the dollar on Friday as debt crisis came back to haunt market participants.

According to some news reports, Cyprus is seeking additional financial assistance from international lenders as part of bailout package to keep its financial system afloat. The news weighed on the market sentiment with European equities falling sharply while the euro also retreated against the dollar. Investors are keeping an eye on European finance ministers meeting in Dublin where a decision regarding extending maturities to Portugal and Ireland loans is expected.

At last check, the euro was down 0.33% against the dollar trading at 1.3057.

More Posts by this author

edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...