Friday, 22 Jan 2010

YEN Continues to Gain versus Counterparts

The Dollar declined against the EUR and JPY today as concerns remain that the Obama administration proposed banking regulations could cause money to flee the U.S. or disrupt the economic recovery. Continued concern over distressed Greek sovereign debt and cautious toward Chinese economic growth and monetary tightening are also dampening risk appetite among investors. Sterling fell against the Dollar for a third day as the U.K.'s Retail Sales grew in December less than expected.

The biggest winner from the concern over the U.S. banking proposal and worries over Euro-Zone debt was the safe-haven Yen. The Yen headed today for a second weekly gain versus all of its most-traded counterparts. The Dollar is currently $1.4140 per EUR from $1.4084 yesterday, when it appreciated to $1.4029, the strongest level since July 30. The USD is currently at 89.90 Yen, from 90.43, after sliding earlier to 89.79, the lowest level since Dec. 18. The EUR is at 127.11 Yen, from 127.37.