Monday, 30 Aug 2010

Forex Update: Dollar Down against Japanese Yen

The US dollar lost ground to the Swiss franc today, but gained against other widely traded currencies, as investors nursed worries about the global recovery and abandoned last week's move into riskier assets.

The greenback also declined against the yen Monday after moves by the Bank of Japan (BOJ) to stem the currency's appreciation fell flat. The dollar erased strides made ahead of today's emergency BOJ meeting. Investors had sold off the yen on expectations that stronger measures than an extension of the BOJ's loan program would be announced.

However, investors took the view that the BOJ steps weren't really new and were therefore already priced into the yen's current value. However, thin market conditions because of a U.K. holiday tended to contain the dollar's losses.