Forecasts
Forex Guides
Members

Dollar, Yen Drop Versus Major Peers Amid Central Bank Easing



The dollar and yen dropped against most major peers as traders estimated policy makers in the U.S. and Japan will maintain or expand monetary stimulus measures. The greenback fell for a fifth day versus the euro after Federal Reserve Chairman Ben S. Bernanke said economic conditions aren’t where he’d like them to be. The yen slid to a more than three-year low against the euro as Japanese Prime Minister Shinzo Abe said currency movements are having an overall positive impact. Japan’s currency plunged 6.4 percent in the previous three days versus the greenback, the most since 1988, after the Bank of Japan (8301) took unprecedented easing steps. “

The European Central Bank has been reducing the size of their balance sheet whereas the Fed and the BOJ are increasing the size of their balance sheets,” said Richard Grace , the Sydney-based chief currency strategist and head of international economics at Commonwealth Bank of Australia. (CBA) “We’re seeing broad-based dollar weakness based on Bernanke’s comments.” The dollar fell 0.4 percent to $1.3060 per euro as of 11:30 a.m. in Tokyo after reaching $1.3068, the least since March 15. It traded little changed at 99.38 yen after earlier rising as high as 99.66, the most since May 2009. The yen weakened 0.4 percent to 129.77 per euro. Fed Easing Bernanke said yesterday that Fed tests of whether U.S. financial companies could survive a severe recession have strengthened the banking system and aided economic growth. “Today the economy is significantly stronger than it was four years ago, although conditions are clearly still far from where we would all like them to be,” he said in a speech in Stone Mountain, Georgia . The Fed is buying $85 billion of bonds a month in the third round of its quantitative-easing strategy to spur growth. […]


Invest In Yourself And Get Premium Analysis
Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

View Subscription Options

Would you like to connect?
Get notifications on new forecasts and articles.

Sign up to our emailing list and get your FREE Stop Losing and Start Winning in Forex Checklist!

Trending Forex Articles

  • EUR/USD Gold CorrelationDollar, Yen Drop Versus Major Peers Amid Central Bank Easing
  • Dollar, Yen Drop Versus Major Peers Amid Central Bank Easing
  • Dollar, Yen Drop Versus Major Peers Amid Central Bank Easing
  • Dollar, Yen Drop Versus Major Peers Amid Central Bank Easing
  • Dollar, Yen Drop Versus Major Peers Amid Central Bank Easing
  • Dollar, Yen Drop Versus Major Peers Amid Central Bank Easing
TheGeekKnows