US Dollar Slipped to 14 Year Low against Japanese Yen, Also Weakens Against Euro

.

After the Federal Reserve's announcement that it will "tolerate" a weaker economy and currency rate amidst growing concerns about Dubai's financial troubles encouraged more and more investors to buy higher-yielding assets outside of the country, the US dollar fell to a 14 year low against the Japanese yen, and also fell against Euro.

On Friday, the dollar slipped to its weakest position against the yen since July 1995, after recording a figure of 84.83. The sharp drop fueled speculations that Japan would intervene to make the most of the situation. During the current week, the dollar fell 2.6% to 86.57 yen, making this the fifth consecutive weekly drop.

"The market has re-priced the risk it is willing to sit with, noticeably against the dollar-yen. My sense is that damage has been done, the market being not as liquid as it has been in a long time. It is going to trade in this way and when the market has to do something it's going to be very, very ugly", said Lane Newman, Director of Currency Trading at ING Financial Services Corp. in New York.

Official figures shared on Friday revealed that the US dollar fell 0.7% to $1.4962 per euro from $1.4862 recorded a week ago. The Japanese yen, on the other hand, hiked by 2% to 129.41 per euro. In all, the US currency dropped by 2.8% to 86.49 yen from a week back's figure of 88.88 yen.


Latest News

Tesla Battery May Help Consumers Save Twenty Five Percent on Electric Bills
Some American Airlines Flights Delayed due to iPad app Issue
Raising Retirement Age could Benefit Social Security According to Christie
Apigee Becomes the Second Tech Company for Silicon Valley to go Public this Year
Massive Crane Begins its First lift Helping to Build the Tappan Zee Bridge
Shares of Facebook Drop as the Social Networking Company Fails to Match Expectat
First Quarter Profits of Discover Financial Services Drops but Surpasses Analyst
Amgen Inc. Announced First Quarter Earnings that Beat Analysts’ Expectations and
Magnificent, Perfect100-carat Diamond Sells for $22Millon in Sotheby’s Jewelry A
Kraft Revamping Its Iconic Macaroni and Cheese Meal by Removing Synthetic Colour
San Juan Capistrano’s Tiered Rates for Water-Use Thrown Out by Appeals Court
Morgan Stanley Announces Better than Expected First Quarter Profits