The Yen is showing a weakening trend against the U.S. Dollar which is causing online currency traders to seek higher yield investments. The Yen dropped 8 percent in price since August against other counterpart monetary units. Analysts believe the Yen’s currency rates may reach 86 per dollar by the end of the second quarter. This year the carry trades have reversed; in 2011 they’ll use the yen and make 23.8 percent compared to the mere 2.8 percent gained with dollar-based trades.
The U.S. market remained closed yesterday in observance of President’s Day. However, the greenback reached 94.78 Swiss centimes during the London session. The American currency may regain some of last week’s losses against the Swiss Franc according to Commerzbank AG day trading strategists.
Furthermore, the U.S. Dollar began the week on a strong note against most of its counterparts as the situation in North Africa reached new levels of instability. During the European session, the greenback rose against the Euro reaching $1.3654. News out of Germany indicated that the Business Climate Index increased, and certainly more than economists expected for the month of February. Other announcements revealed that the Euro zone’s services and manufacturing sectors advanced as well.
The U.S. currency rallied against the British Pound with the GBP/USD trading at $1.6229. However, the American greenback diminished in price against the Canadian Dollar due to increased oil prices. The value of the U.S. Dollar is being influenced by the rise in tensions in the Middle East.
David Sumner is a freelance writer with a specialization in reporting on the world of finance. David holds a B.A. from the University of Maryland. Currently David is based in the U.S. but spends a good portion of the year traveling throughout Europe and Asia.
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