Currency news - Risk appetite weakens yen

Risk appetite weakens yen - 05-01-09

The yen trend was little changed over much of the European session on Friday with the US currency edging higher while the Japanese currency initially resisted further selling pressure on the crosses.

As Wall Street gained ground, the yen became more vulnerable and dollar strengthened to a high above 92.20 with gains accelerating after the 30-day moving average resistance level around 91.85 was broken.

Domestically, the Nikkei gained ground on Monday which supported risk appetite. Bank of Japan Governor Shirakawa also noted that the bank would look for measures to curb yen strength. This combination will maintain some yen vulnerability, although trading conditions are liable to be erratic. The dollar was holding close to the 92 level in early Europe on Monday before pushing sharply higher to above 93.

Tim Clayton
Investica Ltd
E-mail: tim.clayton@investica.co.uk
+44 (0) 1452 781001

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