Market News

After the Australian government proved that producer prices surpassed estimated prices, the Australian dollar climbed to a new high.

Commodity linked currencies, including the common currency Euro and the Australian Dollar, rebounded in Asian trading today with the Euro rising against the U.S. Dollar to $1.4387, a gain of 0.4%.

The U.S. Dollar edged slightly lower against the Japanese Yen in Tokyo trading as investors pared away their carry trade positions, but most analysts expect that move will be short-lived with hedge fund operators and Japan-based life insurers positioning themselves ahead of what is likely to be another Yen slide.

In Asian trading today, as investor focus returns to Eurozone fiscal problems the common currency Euro extended earlier losses against the greenback after failing to break above key resistance.

According to some analysts, the divergence of the Federal Reserve’s monetary policy from that of the European Central Bank’s is what is driving the disparity between the U.S. Dollar and the common currency Euro.

The U.S. Dollar Index slipped to a new 16-month low in Asian trading today as investor speculation that the U.S. Federal Reserve Bank might alter its currently loose monetary policy grows more remote.

The U.S. Dollar rose against the Japanese Yen in Tokyo trading today as pension fund operators in Japan, as well as Japanese importers, bought the greenback heavily.

It’s been a month since the major earthquake that shook Japan, but a recent, smaller earthquake is causing the Yen to strengthen further.

The Japanese Yen slipped lower against the common currency and the Australian Dollar in Asian trading today, and analysts expect further weakening as risk appetite increases, generally.

A day after a second earthquake struck the beleaguered island nation, the Japanese Yen fell broadly, striking multi-month lows against the U.S. Dollar and the common currency Euro.

Ahead of the European Central Bank’s policy and rate setting meeting which is set to begin later in the global day, the common currency fell from multi-month peaks against the Japanese Yen and the U.S. Dollar.

The Japanese Yen continues to broadly decline following last month’s devastating earthquake and tsunami in Japan, and with the concerted efforts of the G7 to keep the Japanese currency from appreciating during this reconstruction period.

Following the Reserve Bank of Australia’s announcement that their policy and rate setting committee decided to hold key interest rates at 4.75%, the Australian Dollar slipped against the U.S. Dollar.

With a meeting of the European Central Bank’s policy setting committee looming later in the week, the common currency struck new multi-month peaks in Asian trading today.

The Japanese Yen continues to weaken versus the majors in midday Asian trading, slipping to a 10-month trough versus the common currency Euro.