Stock Market Watch

Forex Market Update: Yen Falls Sharply against U.S. Dollar

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The yen fell sharply against the US dollar on Friday after Japan said that G20 finance ministers and central bankers from G20 agreed its contention that the ongoing round of unprecedented monetary easing measures was meant to spur-up inflation and had nothing to do with competitive currencies devaluation.

According to Reuters, traders said that no objection from G20 nations to Japan’s monetary policy prompted hedge fund managers to recommence buying the US dollar against the yen, pushing the yen more close to the psychological 100 to the US dollar mark.

Earlier today, the dollar gained more than one percent to touch 99.345 yen mark, falling just short of four week high of 99.95, hit in the previous week. However, during European trading hours the yen pared some of its losses. At around 8:45 a.m. EST, the yen was down 1.01% to trade at 99.16 yen.

In a note to clients, Geoff Kendrick, currency strategist at Nomura said, “Worries that the G20 could criticize Japan were a reason not to push dollar/yen up before … Now it will probably take out 100 yen next week,” according to Reuters.

The weakness in yen also boosted some other high yielding currencies such as the Australian Dollar, euro as speculators felt that Japan’s domestic investors would now seek higher yields in other markets.

As a result, the euro also jumped against the US dollar. At last check the common currency gained 0.20% to  trade at $1.3077.

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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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