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

Brooklyn-based Etsy, the Online Craft Retailer Files for IPO
2009 Transcripts of Fed’s Meetings Released on Wednesday
Orexigen Therapeutics Inc’s Anti-Obesity Drug Contrave, May Benefit Cardiovascul
Bad Weather and Labour Dispute at West Coast Ports Slow Auto industry But It Sti
In Order to Cut Costs, Target to Trim Thousands of Jobs
Lumber Liquidators Holdings Inc. say Their Products are Safe for Use, Stocks of
Online Pollution Documentary Gets Huge Audience in China in Just Two Days
Patrick Harker Named as Plosser’s successor by the Philadelphia Fed
Official manufacturing Index of China Moves Up
Walmart Wage Hike to Create a Ripple in the Other Industries
NXP Semiconductors to buy Smaller Peer Freescale Semiconductor
Minimum Wage for Tipped Workers Raised in New York