Yen slides against dollar and euro

Published: 22 Nov at 9 AM Tags: Euro, Dollar,

The yen has dropped to its lowest level against the euro in four years and to a four-month trough against the US dollar. Pressure on the Japanese currency comes as positive data is released by Germany, the eurozone’s largest economy, and the US, the world’s largest economy.

The euro was trading as high as 136.45 yen and the dollar managed to reach 101.19 yen. The Australian dollar has once again come under pressure after a sell off following an announcement by the central bank that it could intervene to weaken the Aussie.

The euro has also bounced against its US counterpart to $1.3477 after hitting $1.3399, its lowest level in a week. The improvement for the single currency saw the dollar index drop from a high of 81.290 to 80.965.

Although there had been reports that the European Central Bank was considering pushing an interest rate into negative territory, ECB chief Mario Draghi has refuted the rumour. During November the private sector in Germany grew faster than expected, which has helped to offset disappointing data elsewhere.

Although data coming out of the US was also positive, it was not strong enough for analysts to believe the Federal Reserve will immediately alter its easy money policy.