» Forex - Yen rose across majors as investors reduced demand for riskier assets after a series of weak US data

The Yen rose across the board on Thursday as investors reduced demand for riskier assets such as stocks after a series of weak US economic data added to anxiety over the country’s growth picture. The low-yielding yen tends to attract flows during periods of uncertainty as the low interest rates reflect Japan’s capital surplus. Analysts also attributed the Yen’s advance to a reversal of the previous session’s decline and the Dollar’s failure to break through the 105.20 mark against the Japanese currency.

Euro was supported by data showed strong Q1 growth in France and Germany. But the market’s enthusiasm was dampened by ECB’s chief Jean-Claude Trichet warning that the pace might not be as flattering in the months ahead. The ECB’s refinancing rate is at 4% and the interest rate differential between the euro zone and the United States has been the main driver behind the Dollar’s decline.

Source :

This entry was posted on Friday, May 16th, 2008 at 2:00 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.