USD Gains Versus JPY Ahead of FOMC Minutes

The U.S. dollar rebounded to around the 118 yen line Wednesday morning in Tokyo as solid U.S. manufacturing data continued to provide support, after falling overnight from a three-week high it hit in New York.

At noon, the dollar fetched 117.96-97 compared with 117.69-79 yen in New York at 5 p.m. Tuesday. Japanese financial markets were closed Monday and Tuesday for New Year holidays.

The euro was quoted at $1.0405-0405 and 122.74-78 yen against $1.0401-0411 and 122.48-58 yen in New York late Tuesday afternoon.

After falling overnight from 118.60 yen, its highest level since Dec. 15., the dollar erased much of its losses against the yen in Tokyo as solid U.S. manufacturing data for December and upbeat stocks lifted market sentiment, prompting players to sell the yen for the dollar, dealers said.

“An improvement in Chinese economic data also led to yen-selling,” a foreign exchange dealer 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