Dollar Rises Above ¥119

The dollar climbed above ¥119 for the first time in seven years and four months in Tokyo trading Monday, as falls in crude oil prices spurred dollar purchases.

But the dollar spent only a short time at levels above ¥119, unseen since Aug. 9, 2007. At 5 p.m., the U.S. currency was quoted at ¥118.73-74, still up from ¥118.22-24 at the same time on Friday.

Tokyo stocks gained further ground, supported by the yen’s weakness and stronger-than-expected Japanese business investment data announced by the Finance Ministry in the morning.

The benchmark 225-issue Nikkei average ended up 130.25 points, or 0.75 percent, at 17,590.10 — the highest finish since July 26, 2007.

Falls in crude oil prices benefit the U.S. economy and add downward pressure on Japanese prices, reinforcing speculation of additional monetary policy easing by the Bank of Japan to achieve its 2 percent inflation target, currency market sources said.

via Japan News

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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