The US Dollar Exchange Rate was trading in the region of 0.7490 against the Euro as of 10:20 am GMT
Over the last few months the US Dollar has strengthened by 15 per cent against its fellow safe-haven currency the Japanese Yen, trading at 94.46 Yen earlier this month.
Today one industry expert has argued: ‘The market is paring back more aggressive expectations in terms of Bank of Japan policy easing going forward. Further easing from the BOJ is likely to come in the form of domestic instruments. We could be moving to a period of more stability for the yen after a sharp adjustment lower in the past three months’.
However, according to Forecast Pte’s Singapore-based analyst Pak Lai Ng, trade patterns indicate that the US Dollar could achieve 99.74 Yen within a few weeks.
This would be the highest level achieved since 2009.
Before it hits these levels however the US Dollar is likely to trade in the region of 90 Yen for a couple of weeks.
Pak Lai Ng highlighted that the US Dollar is looking ‘overbought’, claiming: ‘The longer-term trend is still up for Dollar-Yen, but it has to correct some of the up move first.’
And it seems that some of that correction is already taking place.
Although the ‘Greenback’ advanced on the Yen in the aftermath of the G-20 meeting, as Japan were not directly criticised for utilising fiscal policy to manipulate the Yen exchange rate, these gains have since been reversed.
Yesterday the Yen approached its lowest level against the US Dollar for almost three-years, but the former currency has since gained by 0.5 per cent, moving to 93.45 Yen per Dollar this morning.
The Yen’s rebound against the US Dollar was triggered by Japanese Finance Minister Taro Aso stating that the government has no plans to buy foreign bonds in order to weaken the Yen and end deflation.
However, as analyst Kumiko Gervaise states: ‘Expectations still remain high that the Bank of Japan will add to monetary easing. That [will prevent] Yen appreciation.’
Current US Dollar Exchange Rates
The US Dollar to Euro exchange rate is currently trading at 0.7490
The US Dollar to Pound Sterling exchange rate is currently trading at 0.6457
The US Dollar to Canadian Dollar exchange rate is currently trading at 1.0116
The US Dollar to Australian Dollar exchange rate is currently trading at 0.9676
The US Dollar to New Zealand Dollar exchange rate is currently trading at 1.1820
The US Dollar to Emirati Dirham exchange rate is currently trading at 3.6729
The US Dollar to Swiss Franc is currently trading at 0.9234
The US Dollar to Japanese Yen exchange rate is currently trading at 93.4600
These exchange rates were correct as of 10:20 am GMT
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