Yen Weakens to 5 year High After Fed Tapering

The U.S. dollar stayed near a five-year high around the 104 yen line Thursday in Tokyo after having jumped there on the U.S. Federal Reserve’s decision the previous day to begin cutting back on its stimulus.

At 5 p.m., the dollar fetched 103.96-97 yen compared with 104.23-33 yen in New York and 102.99-103.00 yen in Tokyo at 5 p.m. Wednesday. It moved between 103.77 yen and 104.37 yen during the day, changing hands most frequently at 104.12 yen.

The euro was quoted at $1.3688-3689 and 142.30-34 yen against $1.3678-3688 and 142.79-89 yen in New York and $1.3770-3772 and 141.82-86 yen in Tokyo late Wednesday afternoon.

The dollar climbed to 104.37 yen in the early morning in Tokyo, a high not seen since October 2008, as market players saw the Fed’s decision as supporting the view that the U.S. economy is making a steady recovery, dealers said.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza