Forex Trading, Euro On a record high Vs Yen, amid weak US dollar

Oct. 21, 2008 - PRLog -- Forex Trading: The EURO currency has shown a record high against the Japanese Yen on Friday by drawing strength from the falling in US dollars and stocks. The Euro was introduced in the year 1999 and since then the currency has touched the highest level on Friday with respect to the Yen http://www.forextradingcurrency.com. The Euro reached Y169.63 recently.

On Friday afternoon in New York, the Euro currency was trading at US $1.5931. On Thursday during the late evening hour, it was trading at US $1.5784.  The US dollar was going at 106.42Yen against the Japanese currency on Friday. This had fallen from the previous day level of Y107.05. The Euro, on the other hand, was trading with respect to the Japanese Yen at Y169.53 on Friday from the Y169, according to sources from EBS, Electronic Broking Services. The U K pound was going at the rate of US $1.9880 on Friday as against the rate of US $1.9774 on Thursday. The dollar was trading at CHF 1.0160 on Friday as compared to CHF 1.0274 late evening on Thursday.

Robert Sinche, who is the head of Global Currency Strategy at the Bank of America, New York has been quoted as saying, “It is very difficult for the Japanese Yen to capitalize too well on the weakness of the American dollar and the preferred alternative in such a case is the Euro. And so, I think the weakening of the American dollar has a spill over effect on the trading rate of the Euro versus the Japanese Yen”. He added too that the “pretty aggressive” selling of the Euro Vs the Yen earlier could also have been instrumental in triggering the euro’s rise versus the Japanese Yen.

“The American dollar has been wallowing in negative sentiment in recent times, in the midst of weak equities in the US stock market on Friday, based on worries over the US government having to offer a cash infusion into the mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) because of the failing housing sector. Of course, these are rumours doing the rounds and no plans are yet available formally for nationalization of these government sponsored institutions”, reported the Wall Street Journal. The advance of the euro as against the Yen came after the euro reached a record high with respect to the US dollar earlier in the day. The Euro was trading at US $ 1.5949 (which was pretty close to it’s all time high rate of $1.6020, reached on April 22nd).

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