Arab Today, arab today yen earns respite after hitting 5mth low vs euro
Last Updated : GMT 14:44:35
Arab Today, arab today
Arab Today, arab today

Yen earns respite after hitting 5-mth low vs euro

Arab Today, arab today

Arab Today, arab today Yen earns respite after hitting 5-mth low vs euro

London - Arabstoday

The yen climbed off a five-month low against the euro on Monday, and picked up versus growth-linked currencies, earning a brief respite from investors seeking to fund purchases in riskier assets by borrowing in the Japanese currency. The yen’s status as the currency of choice for carry trades, where investors borrow a low-yielding currency to buy higher-yielding assets, is likely to continue after the Bank of Japan’s surprise easing last month. Additionally, a recent surge in U.S. Treasury yields has made the dollar less appealing as a funding currency compared to the yen. After hitting fresh lows against the euro and hovering near 11-month troughs against the dollar, the Japanese currency has bounced, but is likely to stay under pressure with most investors looking at any rebound to initiate fresh bearish positions in the yen, analysts said. The euro rose as high as 110.15 yen at one point on trading platform EBS, its highest level since late October. It later pared those gains and was last changing hands at 109.30 yen , down 0.6 percent on the day. The higher-yielding Australian dollar rose to 88.63 yen , its highest level since May 2011. The growth-linked Australian dollar last stood at 87.95 yen, down 0.4 percent on the day. “There has been a significant rise in short yen positions so we are seeing a bit of a pullback ahead of a holiday in Japan,” said Jeremy Stretch, head of currency strategy at CIBC World Markets. Japanese markets will be shut for a holiday on Tuesday. “These are opportunities to initiate fresh bearish positions and we expect dollar/yen to rise towards 85-85.50 yen while the euro having hit a high above 110 yen, is likely to consolidate.” Net shorts in the yen have risen significantly over the past three weeks. With Greek-related risks in the euro zone taking a breather, the euro was supported against the yen, while the Federal Reserve’s not so dovish outlook was giving U.S dollar bulls a boost. That view could be challenged at a speech by New York Fed President William Dudley later in the day. Dudley is an arch dove and could reiterate the Fed’s position that unless the U.S. jobless rate drops further, the chance of further stimulus could not be ruled out. But given a sharp drop in recent days, the Japanese currency may be due for some respite, traders said. Also, March is typically a month that attracts Japanese corporate demand for yen ahead of Japan’s business year-end at the end of the month. Dollar Consolidates The dollar was little changed against a basket of currencies at 79.856 while the euro was slightly lower against the greenback, trading at $1.3150. Despite some easing in euro zone tension, speculators are still running bearish positions in the euro, although they have trimmed some of those bets. The dollar last stood at 83.12 yen, down 0.3 percent on the day and retreating from an 11-month high of 84.187 yen hit on Thursday. Ray Farris, chief strategist for Asia fixed income for Credit Suisse in Singapore said whether the dollar rises further against the yen in coming months will depend on the Bank of Japan’s monetary policy to a large extent. “If the BOJ continues to, month after month, push with new monetary easing measures and does enough to convince the domestic market in Japan that it is serious and credible in trying to raise the inflation rate to about 1 percent, then dollar/yen can probably continue to rise,” Farris said. “But it’s still unclear just how aggressive the BOJ is willing to be,” he said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today yen earns respite after hitting 5mth low vs euro Arab Today, arab today yen earns respite after hitting 5mth low vs euro

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 14:28 2017 Saturday ,25 February

Gold hits 3.5-month high

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4

GMT 12:30 2017 Friday ,24 February

Norway's Telenor to leave Indian telecom market

GMT 10:17 2017 Friday ,24 February

Dow stands out as global stocks tread water

GMT 16:11 2017 Thursday ,23 February

Bahrain Bourse daily trading report
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday