On June 8, 2011, the dollar and yen climbed up as the U.S. economy slows down and may stop the international growth that is motivated by the proffer for currencies. As a reaction, the euro fell, the trade currencies dropped and then yen increased as high as 79.693/dollar (JPY=EBS) it is the highest since May 5th. In order to counter it, the investors invested by loaning yen with lesser interest rates as they are scared of increase of the sluggish world increase would affect the higher-returning profits. The similar efforts increased the dollar as compared to euro and high-profiting currencies like the AUS$. On the other hand, the U.S. interest rate is low.
Based on the ICE dollar index, the evaluation of its value against other six biggest currencies, increased from 0.6% to 73.955 DXY. The US$ is slumping, while the yen increased versus the dollar and euro at 79.693 yen with EBS as its trading platform. The dollar fell for about 0.2% at 79.890 yen.
Financial experts and traders hastened their successive automatic sells were generated on the drop of the US$ beyond 80 yen. As for the euro, it dropped at about 1.0% to 116.411 yen and was out for 0.8% at $1.45683, which unpredicted drop down by 0.6% in the Industrial output of Germany. At the same time, the AUS$ is at 0.9% to US$1.0611. Investors are coming up to be more vigilant about the manner of signaling the imminent rate increase in the succeeding month. They are expecting an increase in July.
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com