🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

FOREX-Dollar gains vs yen, buoyed by rally in stocks

Published 04/09/2009, 09:02 PM
Updated 04/09/2009, 09:24 PM
WFC
-

* Dollar extends stocks-led gains vs yen, euro

* Many major financial centres shut for Easter weekend

TOKYO, April 10 (Reuters) - The dollar rose against the yen on Friday, buoyed by a rally in U.S. stocks following positive earnings guidance from U.S. bank Wells Fargo, although trade was likely to be thin with many major centres shut for holidays.

Wall Street indexes rose between 3 and 4 percent on Thursday after Wells Fargo said it expected to report a record quarterly profit in an encouraging sign for the troubled banking sector, which has been at the heart of the global financial crisis.

The greenback hit its highest in six months against the Japanese currency early in the week but then faced a bout of profit-taking on its gains ahead of the long weekend and the onset of quarterly earnings, which tipped it off the peak.

"There's been position-squaring ahead of the Easter holidays and that has been capping dollar/yen and the yen crosses," said Masafumi Yamamoto, head of FX strategy Japan at Royal Bank of Scotland.

"Today the market tried to follow equities."

The dollar rose 0.2 percent to 100.61 yen after climbing 0.8 percent on Thursday. It peaked at 101.45 yen earlier in the week.

The euro eased 0.1 percent to 131.94 yen and lost 0.4 percent to $1.3112.

European Central Bank President Jean-Claude Trichet said the central bank still had some leeway to cut its main interest rate from its record low of 1.25 percent..

He repeated it would lay out plans for possible unconventional monetary policy measures at its next meeting on May 7 but did not give any details.

The market has been watching for signs the ECB will take unconventional steps to improve credit availability after similar moves by the Federal Reserve and other major central banks.

Fed policy makers warned the U.S. economy would skid more deeply into recession in the coming months but warned it was time to start planning how to wind down spending to avert an inflationary surge..

The number of U.S. workers filing new claims for unemployment benefit fell last week but was still at levels indicating contraction in the labour market has yet to hit bottom.. (Reporting by Charlotte Cooper; Editing by Michael Watson)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.