Posted March 20, 2013 by Karen Varney in Markets

Highest Value of Dollar against Yen Since 2009

Highest Value of Dollar against Yen Since 2009
Highest Value of Dollar against Yen Since 2009

Since August 2009, dollar has taken rise to the strongest against yen with speculations of US job market improvement. With Japan geared up to expand its quantitative easing, the Federal Reserve is expected to show signs of slowdown.

As per the report of economists, it is said that in comparison to the sixteen major currency counterparts, US dollar has been successful in gaining against only two. It is also said that the job market of US will also start to look better from the month of February. Strengthening for the third consecutive day against the value of yen, German analyst shows that the production of industrial sector will also get a rise from the second month. The market shows drop of Sweden’s currency value in relation to dollar and euro after there was decline in the production of industries.

“The market is showing a positive indication with realization that the economy of US is on a growing stage,” says Peter Frank, the head of global currency policy at Banco Bilbao Vizcaya Argentaria SA, located at London. He also states that this trend is reason enough for the euros value to go strong on US dollar. Though yen is not yet positive at this moment, FED will initialize providing details regarding the accommodative policy.

The value of US dollar moved high by 0.8 percent after it climbed to 95.61, the maximum considered level from the year of August 2009. The dollar rose by 0.1 percent against each euro after it got its drop of 1.1 percent last day. It was the biggest decline in the market from January 10th; even the yen dropped by 0.7 percent with each euro.

Last month, there was an addition of 165,000 jobs in the US market, which is up from the 157,000 unit of January. This report is stated by Bloomberg News Survey beforehand the report of Labor Department, Washington which held the rate of joblessness at 7.9 percent. In the words of Sean Callow, the senior monetary strategist of Westpac Banking Corp, Sydney, “The momentum of US economy taking its high, it is expected that Fed will narrow down QE soon.” He also adds that the combination of dollar and yen is the favored device at present to get the bull.

The volatility of option trading displays better scope for reaching its greenback level by December which is 65 percent. It is speculated that after making yen strong by 95 in this week, dollar may soar for the level of 100 within this year end.

The index measurement (Dollar Index) which is used by IntercontinentalExchange to track the value against the six partners of US trading shows gain by 0.2 percent after its rise to 82.604 on 6th March, the highest value since 20th August.

Karen Varney

Karen Varney is a member and former board member of the National Association of Journalists. Karen earned a Bachelor of Arts degree in economy and Busines from Yale University. Following graduation, she was the recipient of a Leo Beranek Reporter Training Fellowship. Her assignments have taken him around the world, An award-winning journalist and reporter, Karen is a highly respected expert on key issues that are on the top of the minds of investors and consumers around the world.