The dollar and yen fell on Friday after a strong U.S. housing sales report and upbeat comments from Federal Reserve Chairman Ben Bernanke reduced the safe-haven appeal of the U.S. and Japanese currencies. At an annual Fed conference in Jackson Hole, Wyoming, Bernanke gave his clearest signal yet that a recovery is at hand, although he warned that growth would be sluggish.
In addition, U.S. existing-home sales rose in July for a fourth straight month, and a euro zone service sector and manufacturing survey showed more improvement than expected. The data bolstered optimism about the global economy and lifted the euro to a two-week high versus the dollar. [ID:nN21378170]
"We've hit a bottom in the housing market. I think you're going to see further dollar and yen declines on that outlook," said Fabian Eliasson, vice president of currency sales at Mizuho Corporate Bank in New York.
"As conditions improve both here and in Europe ... there's less need for safer-haven currencies as the yen and dollar have been in the past year. The market moves into riskier assets."
In late New York trading, the euro rose 0.6 percent at $1.4333 EUR= after hitting a session peak of $1.4375, the highest since Aug. 7, according to Reuters data. It was also up 0.7 percent at 135.18 yen EURJPY=R.
"Both (Bernanke and housing data) were more bullish than what the market was looking for. The market is just taking those headlines as extreme positives for the outlook both in the U.S. and globally," said Jacob Oubina, currency strategist at Forex.com in Bedminster, New Jersey. "It's back to the whole risk-on trade."
The dollar was up 0.1 percent at 94.29 yen JPY=, off a session high of 94.71 yen, after trading as low as 93.40 yen.
1 comments:
It is such an bad news for the people that the value of dollar and yen went down. I feel bad after listen this news but one good think is that dollar goes up 0.1 percent.
Best Signals
Post a Comment