US Dollar surges against the Yen

Monday, January 18, 2010

The Asian market in its Monday session saw the Dollar surge against the Yen. The trend seemed to carry over from Friday’s session in the North American markets where the Dollar strengthened from 91.02 yen to 90.84 yen. Early Asian trading saw the USD/JPY rising 0.15% so far on Monday from its opening price action at 90.85. The price action seems to discount the prevalent turmoil in Japan over unprecedented political hindrances towards the roll out of the budget and many other bills in consideration. However all eyes are now also on the U.S. banks such as the Citigroup and Goldman Sachs amongst others that are due to declare their financial results later into the week and which could significantly impact the current rally of the US Dollar that already lost ground against several other currencies in early Monday trading. The Euro gained from $1.4381 to $1.4375 late Friday, while the British Pound rose to $1.6321 from $1.6280. Although the market roll may change its course soon according to the developments in the US and China, Japanese exporters will surely take advantage of the weaker Yen. Japan exports more than it imports and this is also at a time when the Japanese biggies such as Toyota and Sony corp. have forecast a second annual loss.