Yen Reverses Friday`s Losses Across The Board, Monday, June 25, 2007 4:46:40 AM
The Japanese yen stayed feeble across the board during the Asian deals on Monday. This came as investors showed no interest in the low-yielding currency and being short of data to be influential in the session.Yet, during the early European session, the Japanese currency progressed up against the major currencies and has reversed most of its losses incurred on Friday against them.
The currency of the Asian major has collapsed last week to a 4 Ѕ year low against the dollar, record low against the euro and to new multi-year lows versus the rest of majors.
The fall of the Japanese currency was attributed to the increased interests of carry traders who continued selling the yen against the other high-yielding currencies.
Reuters report that the yen plunged to a 16-year low versus the Swiss franc amid conjectures of a rate hike by the Swiss National Bank in the near term. The Swiss currency is also a low-yielding one with the key interest rate at 2.5% at present in the economy.
The Japanese yen drifted lower against the US dollar in the early Asian session on Monday. Against the Friday`s close of 123.86, the pair equaled 123.90 before gaining ground by about 2:00 am ET. Of late, the pair has touched as low as 123.52, which is a resistance level in the near term. If the pair gains further, 122.0 can be a longer term key level of resistance. Against the pound, the Japanese currency trended slightly lower during the early Asian deals on Monday. Compared to the Friday`s close of 247.45, the pair was quoted at 247. 76 toward the end of the session, and then it changed its course. As of now, the pair is trading near 247.0 and is likely targeting 246.9, upside in the near term.
The Japanese currency dropped a few pips against the Swiss franc in early Asian deals on Monday and the pair hit as low as 100.83 against the Friday`s close of 100.76. However, by about 2:00 am ET, the Japanese yen gained momentum versus the alpine currency, and the pair is now trading near 100.50. If the yen moves further uphill, 100.00 can be a near term resistance level in all probability.
Against the euro, the yen shed a few pips in early Tokyo deals on Monday. Put side by side with the Friday`s close of 166.75, the pair fetched 166.88 during this time period and then it reversed its course. As of now, the pair has been trading near 166.2, likely aiming 166.0 as a resistance level in the near term. The yen saw potency against its European counterpart despite a strong German consumer confidence data from the GfK recently.
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posted by Kalin Tasev @ 3:04 AM
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