Posted January 13, 2011
Perhaps the question should be not whether it could push against it, but whether it could push and win a better exchange rate in the process. It may have been the festive season but were either of these currencies in a festive mood on the currency converter? We shall see which one eventually won the battle and went into 2011 in better shape against the other.
Our opening rate for the US dollar against the Japanese yen is 83.859, so this is the figure we needed to try and climb up from. Two days later it was up to 84.355, but while that was good news it didn’t last that long. The first week ended the good news with a lower rate of 83.693, but it wasn’t too much of a dip to worry about.
The following week was a strange one as the first day saw the exchange rate dip further to 82.876. But it was almost as if the US dollar could not put up with that, as it moved ahead to grab a rate of 84.151 on the 8th against the Japanese yen. Although having said that the week as a whole finished up on 83.660.
So where would we go from here? So far it has been a very up and down affair, with no increase hanging around for that long. Did the Japanese yen have what it took to keep back the might of the US dollar for the whole month, or would it be pushed down eventually?
The 13th saw the US dollar manage to increase its standing to 84.080 again, but once again the yen was having none of it. By the end of the week it had permitted the US dollar to have only a rate of 83.906, so it was clear that any gains thus far were only temporary.
In fact that would prove to be something of a turning point. The US dollar would not have any other rates in the 84.0 area again for the remainder of the month. Indeed it would be the case that it finished on Christmas Eve on a rate of 82.929, sending it even further in the wrong direction. Those people rooting for the Japanese yen to make some headway would have been glad however.
So we had just one week left between Christmas and New Year, and that meant making sure that the dollar tried to stop the rot that seemed to have got a hold on it. The Japanese yen appeared to have exactly what was needed to successfully get the whole show on the road to finish the year with a flourish. But what would the final exchange rate be?
As it turned out the US dollar could do no better than to finish on 81.312 against the Japanese yen as the month came to an end. If we were expecting a better result than that, we were certainly very disappointed.