Stock Market Watch

Forex Market Update: Dollar Index Down, Yen Bounces Back After falling Sharply Against USD

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The yen, which fell to a seven-week low level against the U.S. dollar during Asian trading hours on Wednesday, bounced back as concerns over Syria resurfaced after President Obama said that a military action was still a possibility.

Obama said that he will pursue a newly strengthened diplomatic route for trying to resolve the impasse with Damascus; however, he added that the U.S. could still take a military action against Assad’s regime, if required. Obama suspects that Syria used chemical weapons against its own civilians last month.

At last check, the dollar index, a measure on U.S. unit’s performance vis-à-vis a basket of six major traded currencies, edged down 0.23% to 81.64

The WSJ$ Index, which used slightly broader indexing criteria, fell 0.22% to 73.92.

At last check, the yen gained 0.38% against the dollar to trade at 100.01.

Earlier today, the yen turned broadly lower as fading concerns over Syria prompted investors to cut positions on the Japanese currency, which is regarded as the most liquid currency in the times of geopolitical tensions.

According to Reuters, analysts said that significantly improving macroeconomic environment also weighed on the yen.

Earlier on Tuesday, Damascus accepted Moscow’s proposal to allow international observers to scrutinize its weapons development program, raising hopes that diplomatic means will thwart a military conflict. As a result, the dollar peaked at 100.62 yen on Wednesday, which was its highest level recorded since July 22.








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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.

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