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Re: [Barry] 3rd Quarter US Dollar Trends Thread
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This is kind of how the FOREX market works. On one hand you'll get reports that the US dollar is weak, but then news people will release titls like, "dollar hits 5- month high against the yen." In reality this means little. The dollar may look stronger in relation to the Yen only because the Yen dropped (investors lost confidence in the Yen and liquidated their suppllies). Investors did in fact dump Japanese currency after it failed to hold on to gains following the BOJ tankan survey, which showed confidence at big manufacturers hitting a two-year high.
The yen slid even as the rise in the headline tankan index kept the Bank of Japan on track to raise interest rates again before the end of the first-quarter next year, driving Japanese government bond yields higher.
The dollar 'climbed' or appreciated against the Yen, however, overall the US dollar is thought to be weaker against major world currencies. Essentially most major currencies apprecaited against the Yen.
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Barry
Mr. Do It All
Oct 7, 2006, 2:31 PM
Post #2 of 2
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