Yen Falls In Response

The euro lifted off a four-month low against the dollar on Friday, as investors pared bearish bets after earlier falls but concerns about a Greek euro exit and instability in the Spanish banking system were likely to keep it under pressure. Investors preferred the relative safety of the U.S. dollar and the Japanese yen and were reluctant to buy riskier assets after Moody's cut the credit ratings of 16 Spanish banks on Thursday. The euro tumbled to $1.2642, not far from its lowest of the year, before recovering to trade 0.2 percent higher at $1.2715. Traders cited large option expiries at $1.2700 which were likely to cap gains. Some traders said the euro's recent decline could slow, given investors may be wary of holding positions over the weekend when leaders of the G8 major industrial ...

Fears of a Greek exit from the euro zone worsening the debt crisis facing other European nations gripped financial markets on Wednesday, sending shares and other riskier assets lower as investors shifted funds into safe havens like the U.S. dollar. The euro touched a fresh four-month low of $1.2883, Spanish and Italian bond yields rose, while the FTSE Eurofirst .FTEU3 index of top European shares hit its lowest level for the year at 983.95 points, down over 1 percent. The probability of Greece leaving the 17-member currency bloc increased markedly after political leaders in Athens failed to form a government on Tuesday, forcing another round of elections. Opinion polls show this is likely to be won by leftist parties opposed to the country's bailout deal. (nL5E8GG0S1). In response, ...

Forex Morning Briefing : Markets to digest election weekend; Risk aversion picks up What’s new: Asia: Risk on the retreat following the French election result. AUD, NZD falling, JPY rising. Europe: EUR/USD falls to 3-months low after Hollande won the election, triggering concerns for the future of the Euro zone. United States: Falling unemployment rate despite a drop in Nonfarm payrolls and risk aversion has kept the US dollar bid. Rates in Asia and Indices: EUR/USD 1.2955 1.3033 -0.56 % USD/CHF 0.9215 0.9272 -0.54 % GBP/USD 1.6115 1.6155 -0.04 % USD/JPY 79.65 79.98 0.01 % EUR/CHF 1.2009 1.20148 0.01 % EUR/JPY 103.24 104.05 0.59 % Dow Jones 13022.34 13205 -1.27 % Nasdaq ...

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400) WORLD The RBNZ kept its policy rate unchanged at 2.5%, but implicitly raised the prospect of a future interest rate cut. The short overnight policy statement warned that continued strength of theNew Zealanddollar may force the bank “to reassess the outlook for monetary policy”. Previously, only a deferral of interest rate hikes was being considered in the case of persistent currency strength, but now two-way risk has been injected into the policy language. Surprisingly, theNew Zealanddollar did not weaken in response, and soon gained 30 pips in line with a more supportive backdrop for risk appetite. Meanwhile, FX investors continue to digest the FOMC’s latest policy announcement and forecast revisions. Near-term GDP growth and inflation ...

(Reuters) - The yen turned higher on Monday while riskier currencies like the Australian dollar came off highs as support from surprisingly strong Chinese factory data faded and investors took a cautious view of prospects for the global economy. The euro was steady, staying near a one-month high against the dollar but remaining vulnerable to renewed bouts of selling as a weak euro zone manufacturing activity survey highlighted a grim outlook for the region. The single currency was helped by falls in Italian and Spanish bond yields, although trade was e "It seems like investors remain cautious with service sector data from China still to come this week and nothing to indicate an imminent policy response from the Chinese to the slowdown in their economy," said Valentin Marinov, head of ...

(Reuters) - The euro fell to a decade low versus the Japanese yen on Monday as concerns about the financing needs of highly indebted euro zone countries plagued the shared currency into the new calendar year, though moves were exacerbated in holiday-thinned trade. The euro fell as low as 98.71 yen on the EBS trading platform in early Asian trade, its lowest since late 2000, extending falls on Friday when it broke below 100 yen to finish the year down around 8 percent. It recovered to trade flat for the day at 99.60 yen in Europe, with liquidity thin because most Asian markets as well as the UK and U.S. were closed for New Year holidays. Versus the dollar, the euro was steady at $1.2947, less than a cent above its 2011 low of $1.2858 hit last week. Worries about high sovereign debt ...

(Reuters) - The euro fell to a decade low versus the Japanese yen on Monday as concerns about the financing needs of indebted euro zone countries continued to weigh on the shared currency, though moves were exacerbated in holiday-thinned trade. The euro fell as low as 98.71 yen on EBS trading platform, its lowest since late 2000, extending falls seen on Friday when it broke below 100 yen to finish the year down around 8 percent. It later recovered to 99.60 yen, with liquidity thin as Asian, British and U.S. markets closed for New Year holidays. Versus the dollar, the euro was at $1.2941, less than a cent above its 2011 low of $1.2858 hit last week. Worries about sovereign debt levels and a lack of policy solutions to the region's 2-year-old debt crisis were expected to push the euro ...

(Reuters) - The euro edged up against the dollar on Friday after Spain announced a slew of measures to control its finances, but analysts said the single currency would stay pressured in 2012 as the region's debt crisis roils on. Spain's new government outlined spending cuts and tax hikes for the new year but also said that the public deficit for 2011 would come in above target. "The euro got a little bit of a boost from the Spain news, but I don't think that's going to offer much meaningful support to the single currency heading into the new year," said Joe Manimbo, market analyst at Travelex Global Payments in Washington. The euro reversed an early loss against the U.S. dollar to add 0.19 percent to $1.2986. The same baggage that dragged on the euro this year - worries about ...

(Reuters) - The euro pared losses from a 10-year low against the yen and edged slightly higher against the U.S. dollar on Friday, nearing the end of a year of stumbles that could presage more of the same in 2012. The single currency fell to 99.963 yen on the EBS trading platform, breaking below an options barrier at 100.00 yen. The euro last traded at 100.15 yen, according to Reuters data. The euro is down about 7.8 percent against the yen for the year. Thin trading exacerbated volatility, with many traders out for the end-of-year holidays. But analysts said the euro was likely facing a bleak year as the euro zone sovereign debt crisis, which has roiled markets for two years, rages on. "The currency markets are going to continue to take their cue from fixed income and sovereign credit ...