Posted On: January 27, 2013
The monetary unit of Japan climbed from its 30-month low against the U.S. dollar on Monday as investors and traders remained optimistic that the currency would gain in value after recent losses, according to Bloomberg.
Losses that the yen suffered during the past month, when new Prime Minister Shinzo Abe has encouraged easing programs to spur the globe's third-largest economy, are believed to have been overdone.
As the Japanese yen's exchange rate against the dollar moves "north of 90 to 91, the impetus, or the ability to break higher, will prove to be a little more compromised," head of foreign-exchange strategy Jeremy Stretch with Canadian Imperial Bank of Commerce in London told Bloomberg on Monday. "The combination of data points should be reasonably dollar-supportive."
After scraping its lowest value since June 2010, the yen climbed 0.2 percent against the U.S. dollar. The yen increased 0.3 percent against the shared currency of the European Union.
But Reuters reports traders and strategists believe the yen will remain weak amid anticipations that the government of the Pacific Rim nation will continue implementing easing strategies.
Category: Industry News
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