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The greenback posts biggest one-day gain against the yen since 1974, by AceTrader

ByAceTrader
AuthorAceTrader
Published 10/28/2008, 08:00 PM
Updated 01/01/2017, 02:20 AM

Updating time : 28/10/2008 21:21 GMT

The U.S. dollar posted its biggest one-day gain against the Japanese yen since 1974 on Tuesday as a sharp rebound in global equity markets sparked a tentative recovery in risk appetite. The yen also extended its losses after Japan's leading business newspaper said the Bank of Japan is considering cutting interest rates by a quarter-percentage point to support its sagging economy, which has been battered by a strong yen and declining equity prices.  
  
The dollar was last trading at 97.75 yen by late New York session, up 5.3 percent on the day, however, the dollar index dipped 0.95 percent to 86.361. The euro rose to as high as 1.2744 versus the dollar and surged 7.3 percent to 124.69 against the yen. The British pound also climbed to 1.5965 and 156.22 against the dollar and Japanese yen respectively.  
  
Japanese yen weakened sharply versus high-yielding currencies on speculation investors will revive carry trades. The yen dropped by 11 percent to 63.21 versus the Australian dollar and 9.9 percent to 55.19 versus the New Zealand dollar.  
  
U.S. stocks rallied on Tuesday, with the Dow Jones industrial index (DJI) surging almost 11 percent to close above 9,000 as investors scooped up beaten-down shares and optimism grew that the U.S. Federal Reserve and other central banks will cut interest rates further. The DJI ended up 889 points at 9065.  
  
On Wednesday, economic data releases include New Zealand Trade data, Japan Industrial production, U.S. durable goods orders and the closely-watched Fed rate decision at 18:15GMT.

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AceTrader M-T-D Intra-Day performance summary  (as of 28 Oct)

USD/JPY  +88  | EUR/USD +143 |  USD/CHF +233 |  GBP/USD +182 |


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