Asian Session – Yen higher on short-covering and profit-taking
December 5, 2013 7:15 am
The yen strengthened during today’s Asian session as traders decided to book some profits on their short yen positions while no obvious catalyst was apparent in terms of economic releases and news.
The dollar lost 0.27% against the Japanese currency to trade at 102.07, backing off from the high of 103.38 achieved lately.
The euro’s losses were relatively contained, backing off a modest 0.04% against the yen to 139.07. The euro had achieved a high of 140.03 against the yen two days ago.
Most Asian stockmarkets traded lower, contributing to a risk-off atmosphere which can benefit the yen, with Tokyo’s Nikkei 225 falling by 1.50%.
However, traders remained bearish on the yen, on expectations that the Bank of Japan would continue its ultra-easy monetary policy next year.
The dollar appeared to be hurt by conflicting economic releases during the previous day. The ADP private-sector employment number was stronger-than-expected, whereas the ISM non-manufacturing survey disappointed on the downside.
The euro was up 0.24% against the dollar to close the session at 1.3625.
The market looked ahead to the results of the meetings from the European Central Bank and the Bank of England although no change was expected.
The Australian dollar gained slightly against the US dollar, rising by 0.08% to trade at 0.9032.
The yen strengthened during today’s Asian session as traders decided to book some profits on their short yen positions while no obvious catalyst was apparent in terms of economic releases and news.
The dollar lost 0.27% against the Japanese currency to trade at 102.07, backing off from the high of 103.38 achieved lately.
The euro’s losses were relatively contained, backing off a modest 0.04% against the yen to 139.07. The euro had achieved a high of 140.03 against the yen two days ago.
Most Asian stockmarkets traded lower, contributing to a risk-off atmosphere which can benefit the yen, with Tokyo’s Nikkei 225 falling by 1.50%.
However, traders remained bearish on the yen, on expectations that the Bank of Japan would continue its ultra-easy monetary policy next year.
The dollar appeared to be hurt by conflicting economic releases during the previous day. The ADP private-sector employment number was stronger-than-expected, whereas the ISM non-manufacturing survey disappointed on the downside.
The euro was up 0.24% against the dollar to close the session at 1.3625.
The market looked ahead to the results of the meetings from the European Central Bank and the Bank of England although no change was expected.
The Australian dollar gained slightly against the US dollar, rising by 0.08% to trade at 0.9032.
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