Japanese Yen Is Trouncing US Dollar
We took a look at this particular currency pairing last month, but since then the story has got even more interesting so it makes it worth following a bit further along the road. Perhaps from this much detail we can predict what could happen next?
But before we think about that, let’s look at the last figure we had. This showed the US dollar grabbing a total of 90.8729 Japanese yen, and it took place on the 11th September. What happened from that moment on?
The Monday of the following week didn’t start well for the US dollar, this much was for certain. It could only garner an exchange rate on the currency converter of 90.8591 by the time the day was out. And even though that climbed to 91.2052 just twenty four hours later, it wasn’t enough to start a longer period of improvement. In fact things got worse from there because the next day saw a closing exchange rate of 90.3823.
An improvement the following day dropped back down to 91.2410 by the time the week was out, but if the US dollar was looking reasonably good at that point there was more to come.
The lowest point of the following week was unfortunately on the last day of all, as the dollar could only muster up an exchange rate of 90.3817 by that point. And that would also be the last time for a while that the US dollar could claim any kind of exchange rate with the Japanese yen that started with 90.0.
Even as that next week got underway the yen took control and beat the US dollar into submission. By the close of play on Monday evening the dollar was on the ropes and could only claim 89.5221 Japanese yen.
It got closer to regaining the 90.0 rate again the following day but not quite close enough, as it stalled on 89.9786. That was followed by a more severe fall to 89.5103 before bouncing back to 89.9511 and getting close to that 90.0 barrier again. But it would remain as a barrier for a while yet. The yen was simply proving too strong for the US dollar to cope with.
Indeed this was proven by the fact that the final day of the week finished on 89.3925, the dollar falling further and failing to get anywhere near the 90.0 mark by the time the week was out. These sharp rises and falls would also prove to be indicative of how the following week would play out, with a rise to 89.3925 on the Monday swiftly followed by a much lower 89.1251 the next day.
This carried on throughout the week before the dollar finally finished up on 88.8949. That all elusive 90.0 mark seemed to be some distance away now, but as things turned out it would regain it and then lose it again just as quickly.
Monday closed on 90.0711 – and before we knew it Tuesday brought a finishing figure of 89.4913 to the table. But that had risen again to 89.6377 on the last day for which we currently have data to report on, so perhaps the US dollar is showing a little strength at last.
It seems unlikely and simply the result of a little too much hope, but perhaps the US dollar can and will fight back from here. The most likely result though is that the Japanese yen will continue to take control and push the US dollar back down below the level of 89.0 yen once again. It is difficult to judge on the figures as we have them, but it does seem more probable that the yen will continue to have the upper hand here.
That is what we are putting our money on at the moment anyway, although as usual it will be curious to see what actually does happen. There was a fascinating news story on the BBC website, which reveals more about who this exchange rate benefits at the moment, and in which ways. Needless to say this type of situation has both good and bad points, so it is just a matter of which ones are most important to the individual.
And there may even be some intervention as yet from the Japanese government if the yen did continue to head up. Watch this space.
