The U.S. dollar recovered against the Japanese yen today after the dollar lost significantly against yen on Friday and this week trading opened with a wide gap against the greenback on Forex.
USD/JPY had its biggest drop last Friday since March 19 this year. As the Forex market opened today the currency pair experienced a very wide gap of almost 50 pips (it closed at 104.92 on Friday and opened at 104.44 today).
Today dollar rose against yen as the investors decided to return to the carry trade difference between the high-yielding European currencies and the low yielding yen. Dollar got lifted in the wave as the long yen positions were closing down massively, while the dollar stood only little down against euro and pound.
The current wave of yen-selling and the uprise of the European currencies is seen as the result of the Jean-Claude Trichets recent statements about a possible rate hike by the ECB.
USD/JPY rose today from 104.44 to 105.45 as of 8:36 GMT with the daily high being near that level too. The pair is till below its Friday open level which was at 105.94.
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