US Dollar gains on the Yen as the Asian currency weakens before the meeting of influential leaders.
The US Dollar Exchange Rate was trading in the region of 93.2900 against the Japanese Yen as of 16:12 pm GMT
Over the next few days US President Barack Obama will be involved in talks with fellow leader Shinzo Abe. The Japanese Prime Minister and US head honcho will enter into a series of discussions over the next few days in Washington DC, covering topics including trade agreements, North Korea and (unsurprisingly) the economy.
Although it hasn’t been officially confirmed, many industry experts believe that Obama and Abe will discuss the recent weakening of the Japanese Yen and the policy methods employed by the nation’s government which triggered the declines.
Since Abe took office a mere two months ago the Yen has shed 11 per cent against its safe-haven rival the US Dollar, indicating that Abe’s plan to up monetary easing is having the desired effect.
The weaker Yen has only just started helping Japanese companies in foreign markets, and economists have predicted that the Asian currency could weaken to over 99.00 Yen per Dollar.
If Obama doesn’t speak up on the issue of currency intervention while meeting with Abe it will be viewed by many as a sign that Obama approves the Japanese PM’s methods, and the Yen could slide closer to that 99.00 level.
In other news, the US Dollar was able to climb significantly on its Canadian counterpart today as the ‘Loonie’ posted widespread losses following the release of ‘hugely disappointing’ retail sales data for the nation. After the data was published the Canadian Dollar fell by 0.6 per cent against the ‘Greenback.’
The US Dollar also advanced modestly on the Euro after the European currency declined. The common currency pared earlier gains after the European Commission lowered its growth forecast for the Eurozone and the European Central Bank announced that banks 3-year loan repayments would be roughly half the amount expected by economists.
Current US Dollar Exchange Rates
The US Dollar to Euro (USD/EUR) exchange rate is trading at 0.7579
The US Dollar to Pound Sterling (USD/GBP) exchange rate is trading at 0.6553
The US Dollar to Canadian Dollar (USD/CAD) exchange rate is trading at 1.0243
The US Dollar to Australian Dollar (USD/AUD) exchange rate is trading at 0.9709
The US Dollar to New Zealand Dollar (USD/NZD) exchange rate is trading at 1.1970
The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading at 93.2900
These exchange rates were correct as of 16:12 pm GMT
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