Broadgate: Market News 22/2
22 February 2012
The yen fell for a fourth day versus the dollar, the longest losing streak in more than two months, as investors sold the Japanese currency to buy higher-yielding assets.
The yen has declined against all its major peers since Japan’s central bank increased its asset-purchase fund to 30 trillion yen last week.
The euro reached a three-month high versus Japan’s currency after the Greek government won a second bailout and sent debt- swap and austerity measures to parliament for approval.
The euro rose against the majority of its most-traded counterparts as Greece won a second international bailout and its government submitted debt-swap and austerity measures to the country’s parliament for approval.
Greece’s government agreed to fiscal measures, and collective action clauses for bonds. Legislation needed to carry out those measures was submitted to lawmakers and posted on the Greek parliament’s website.
“We should have a bit of positive sentiment for the euro over the rest of this week as the market still seems a little short,” said Matthew Brady, executive director for foreign exchange at JPMorgan Chase & Co. in Sydney. “We will at some stage this week test $1.34 on the euro just to flush out some of the short positioning.”
Gains in the dollar were limited as U.S. stocks rallied to the highest levels since 2008 before retreating.
The dollar rose to a six-month high of 80.08 yen on speculation signs of growth in the U.S. economy will reduce the case for more quantitative easing by the Federal Reserve.
The U.S. currency gained for a fifth day versus the yen before data economists forecast will show the housing market is stabilizing.
The information set out herein has been obtained from various public sources and is by way of information only. Broadgate Financial can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any decision which may have any financial or other impact.
Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell investments.