Home / Business / Yen slides to uninformed seven-year low vs dollar; Aussie falters

Yen slides to uninformed seven-year low vs dollar; Aussie falters

SYDNEY/SINGAPORE (Reuters) – The yen slid on Thursday, distinguished seven-year lows opposite a dollar and a six-year tray contra a euro as speculators poured into lift trades saved by a waves of super-cheap liquidity from a Bank of Japan.

The dollar romped as distant as 118.64 yen JPY=, a top turn given Aug 2007. The greenback final traded during 118.62 yen, adult 0.6 percent on a day, carrying risen roughly 10 yen given a BOJ sprang a warn impulse stairs on a marketplace during a finish of October.

Likewise, a euro shot to 148.80 yen EURJPY, touching a strongest turn opposite a yen given Oct 2008.

The dollar had a brief hiccup on Wednesday when mins of a Federal Reserve’s final process assembly struck a some-more dovish tinge than a post-meeting matter had.

But they also showed Fed members were comparatively unmotivated about a dollar’s strength, a noted contrariety to many other vital executive banks where weaker currencies are favored.

“The Fed has left a immature light resplendent brightly for serve USD gains,” pronounced Alan Ruskin, tellurian conduct of banking plan during Deutsche.

“The USD/JPY take-profit section still looks some approach off, a small forward of a vital 120 yen level.”

Many investors seemed to agree, with a Citibank check of a business anticipating roughly 40 percent approaching a dollar to trade atop 120.00 yen by year end.

“Now that 120 is within reach, we consider a marketplace wants to take it there,” pronounced Stephen Innes, comparison merchant for FX attorney OANDA in Singapore, referring to a dollar’s arise contra a yen.

Later on Thursday, a dollar could take a cues from a collection of U.S. mercantile data, including a consumer cost index and jobless claims. ECONUS

With a marketplace focused on a yen, a euro changed usually marginally on a U.S. dollar, easing 0.1 percent to $1.2545 EUR=.

The Australian dollar fell 0.3 percent to $0.8589 AUD=D4, after a cost of iron ore .IO62-CNI=SI strike a five-year low.

Iron ore is Australia’s largest trade earner and has scarcely halved in value this year, partly due to a slack in China.

A private consult display that expansion in China’s production zone stalled in November, with outlay constrictive for a initial time in 6 months, also weighed on a Australian dollar.

(Additional stating by Cecile Lefort in Sydney; Editing by Simon Cameron-Moore)

Article source: http://www.reuters.com/article/2014/11/20/us-markets-forex-idUSKCN0J32I720141120

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