Asian Session – Yen slips to 5-year low as dollar gains on US jobs data
December 27, 2013 7:25 am
Asian equity markets rallied on Friday following a strong performance by US markets overnight. Upbeat data on initial jobless claims on Thursday suggested that the overall US recovery seems to be on track, underpinning the Fed’s decision last week to begin tapering its bond purchase program.
The number of Americans filing for unemployment benefits fell more- than- forecast last week to 338,000, the lowest level in nearly a month.
Today’s rally in the Asian equity markets led to reduced safe-haven demand for the yen. Meanwhile, some mixed economic data out of Japan were also taken positively by markets, contributing to risk sentiment and outflows from yen. The overall outlook is for a weakening yen on market expectations that the Bank of Japan would sustain increased monetary easing and stimulus measures.
The dollar jumped to a new 5-year high against the yen on the back of the upbeat US jobs data and the broadly weaker yen. The dollar reached 105.02 yen for the first time since October 2008.
The yen weakened further against the euro in the Asian session today, reaching a high of 144.24 and down 0.5% in the session. The gains in the euro versus the yen helped lift the euro against the dollar by 0.5% to $1.3762.
The economic calendar is light for the rest of the day and markets are expected to be quiet ahead of the weekend and the year-end.
Asian equity markets rallied on Friday following a strong performance by US markets overnight. Upbeat data on initial jobless claims on Thursday suggested that the overall US recovery seems to be on track, underpinning the Fed’s decision last week to begin tapering its bond purchase program.
The number of Americans filing for unemployment benefits fell more- than- forecast last week to 338,000, the lowest level in nearly a month.
Today’s rally in the Asian equity markets led to reduced safe-haven demand for the yen.
Meanwhile, some mixed economic data out of Japan were also taken positively by markets, contributing to risk sentiment and outflows from yen. The overall outlook is for a weakening yen on market expectations that the Bank of Japan would sustain increased monetary easing and stimulus measures.
The dollar jumped to a new 5-year high against the yen on the back of the upbeat US jobs data and the broadly weaker yen. The dollar reached 105.02 yen for the first time since October 2008.
The yen weakened further against the euro in the Asian session today, reaching a high of 144.24 and down 0.5% in the session. The gains in the euro versus the yen helped lift the euro against the dollar by 0.5% to $1.3762.
The economic calendar is light for the rest of the day and markets are expected to be quiet ahead of the weekend and the year-end.
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