Yen down against the dollar as confidence returns

Published: 3 Sep at 9 AM Tags: Euro, Dollar,

The yen, popular as a safe haven investment at times of market uncertainty, has slipped to its lowest level in a month against the US dollar as it now looks like military intervention in Syria has been put on hold. An apparent recovery in global manufacturing has also helped to push the yen lower as the appetite for risk returns.

The dollar has gained around one per cent against the yen and is currently trading at 99.705 yen, not far off the 99.995 yen peak the greenback hit on 2 August. Most traders expect further support to be given to the dollar as the Federal Reserve starts to taper its huge bong buying programme, something that could begin later this month.

If payroll figures due to be published at the end of the week are positive the Fed will be encouraged to go ahead with reducing stimulus.

The euro is hovering around a one-month low against the dollar at $1.3173. Disappointing retail figures from Australia saw the Aussie dollar sag slightly from 90 cents to $0.8975. Most analysts expect the Reserve Bank of Australia to keep interest rates at the current record low of 2.5 per cent.

Although most emerging markets currencies have remained stable today, investors will be watching to see if the reining in of the Feds easy money policy will draw attention towards the dollar.


Forex Tools, Data & Calculators

 

Popular Forex Exchange Rates