Stock Market Watch

Dollar Edges Lower Against Yen

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The U.S. dollar slipped against the yen on Friday as risk-averse investors booked profits ahead of the upper house elections in Japan, scheduled over the weekend.

Typically, whenever Japanese equities fall sharply, investors tend to seek safety in highly liquid currencies such as yen. The Nikkei 225 fell 1.48% on Friday.

Nonetheless, gains were limited against the USD as opinion polls suggested that Shinzo Abe led ruling party is all set to win a majority in the upper house.

Abe has been supportive of Bank of Japan’s unprecedented monetary easing. The victory in the upper house will increase expectations of some more economic stimulating measures.

On the other hand, speculation is rife that the interest rates, boosting the demand for the U.S. dollar.

“Everybody expects Abe to gain a majority in the upper house and strengthen his position and policy … that would leave the door open for more easing if needed and see dollar/yen rise,” said Niels Christensen, FX strategist at Nordea, according to Reuters.

At last check, the dollar was down 0.05% to 100.39 yen.

The euro was also gaining against the dollar. At last check, the common currency gained 0.11% to trade at $1.3122.

The dollar index, a gauge on greenback’s performance vis-à-vis a basket of six major traded currencies, edged down 0.1% to 82.672, slightly above its three-week low of 82.342, hit on Wednesday.

 

 








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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.

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