USD/JPY Rises Above 120 For First Time Since 2007

The U.S. dollar topped the 120 yen line for the first time since July 2007 in New York on Thursday, supported by a positive outlook for the world’s largest economy in contrast to flagging Japan and Europe .

The dollar surpassed the psychologically important line Thursday morning in New York , up from 119.88-90 yen in Tokyo at 5 p.m.

The dollar rose as momentum carried over from Tokyo trading in which traders took heart from higher-than-expected growth in the U.S. nonmanufacturing sector in November and a more upbeat view in the latest U.S. Federal Reserve Beige Book survey of the U.S. economy region by region, both released Wednesday.

The move also came after the European Central Bank left its key interest rate at a record-low 0.05 percent at its policy meeting Thursday.

via Kitco

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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