USD/JPY Broke Through 99 Level to Fall to 98.60

The U.S. dollar rose to the upper end of the 98 yen level Friday morning in Tokyo, inheriting upward momentum from overnight trading on rises in global stocks.

At noon, the dollar fetched 98.94-97 yen compared with 98.67-77 yen in New York and 98.21-22 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.3348-3349 and 132.08-15 yen against $1.3352-3362 and 131.80-90 yen in New York and $1.3351-3352 and 131.12-16 yen in Tokyo late Thursday afternoon.

The dollar extended its gains throughout the morning as overnight rebounds in European and U.S. shares as well as overall gains in Tokyo and other Asian shares Friday on positive global economic data soothed investors’ concern over recent stock weakness.

A rise in stocks often leads to the dollar gaining versus the yen as it boosts traders’ risk appetite and reduces demand for the perceived safety of the yen.

The 225-issue Nikkei Stock Average surged 316.23 points, or 2.37 percent, from Thursday to end the morning session at 13,681.40.

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