Asian Session – Euro peaks at 5-year high against yen
November 29, 2013 8:01 am
The euro ticked up to a 5-year high against the yen in Friday’s Asian session and is set to end the week as one of the best performing currencies. The yen has lost over 4% against the euro on the month. The dollar hit a fresh 6-month high versus the yen early in the session.
Yen weakness is being caused by investors selling this high yielding currency to be able to fund carry trades against lower yielding currencies.
Meanwhile, data out of Japan this morning showed consumer inflation rose to a 5-year high and factory output expanded for a second consecutive month in October, signalling a strong recovery in Japan’s economy. This news helped the yen regain early session losses, to end flat against the dollar at 102.29, while it was down 0.05% against the euro at 139.21.
The euro gained 0.05% against the dollar to 1.3611 and is on course to complete a third straight week of gains. The euro is being buoyed after above-forecast German inflation data from Thursday. Also helping the euro was news that S&P affirmed Spain’s credit rating at BBB-, and cited a resumption in economic growth.
The Australian dollar fell to a 2-month low of 0.9054 in early session trading but soon bounced to end 0.03% higher at 0.9099. The Aussie is set to end the month with a loss of almost 4% since the currency has been put under pressure by comments from RBA Governor Stevens who said the currency’s value is too high.
The euro ticked up to a 5-year high against the yen in Friday’s Asian session and is set to end the week as one of the best performing currencies. The yen has lost over 4% against the euro on the month. The dollar hit a fresh 6-month high versus the yen early in the session.
Yen weakness is being caused by investors selling this high yielding currency to be able to fund carry trades against lower yielding currencies.
Meanwhile, data out of Japan this morning showed consumer inflation rose to a 5-year high and factory output expanded for a second consecutive month in October, signalling a strong recovery in Japan’s economy.
This news helped the yen regain early session losses, to end flat against the dollar at 102.29, while it was down 0.05% against the euro at 139.21.
The euro gained 0.05% against the dollar to 1.3611 and is on course to complete a third straight week of gains. The euro is being buoyed after above-forecast German inflation data from Thursday. Also helping the euro was news that S&P affirmed Spain’s credit rating at BBB-, and cited a resumption in economic growth.
The Australian dollar fell to a 2-month low of 0.9054 in early session trading but soon bounced to end 0.03% higher at 0.9099. The Aussie is set to end the month with a loss of almost 4% since the currency has been put under pressure by comments from RBA Governor Stevens who said the currency’s value is too high.
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