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Dollar Yen Fell to 101.00 on profit taking. Equities fell in Europe

Posted by Chris Advincula on May 29, 2013 7:51:00 AM

May 29 Wednesday 11:55 GMT

LONDON – The Japanese Yen made strong gains against most of the major currencies, buoyed by a weak equities market and as institutional and hedge fund investors unwound their long positions. Dollar yen in particular fell sharply in early Europe.  Traders said that a drop in the Nikkei equity futures prompted the move to push the dollar rate to 101.00. Nikkei futures dropped by 250 points to 13,930 as of 10:45 GMT. 

Dollar yen fell steadily in Europe to 100.96 from the session high of 102.48 (-152 points) while euro yen fell to 130.70 from 131.61 (-91 points) and was steady at 131.20. 

Although today’s price action was a lower dollar-yen rate, most analysts still expect the yen to continue to weaken on expectations of further stimulus measures by the Bank of Japan and the dollar to strengthen because the Fed is looking to tighten monetary policy in the near term future rather than loosen policy.

YEN.5.29 resized 600

Chart: FXTrek.com

 

Chris Advincula

WorldWideMarkets

 

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