Posted January 28, 2011
US dollar up against yen. Japan sovereign debt a concern.
The US dollar was up for the day on Thursday by as much as 1.1 percent against the Japanese yen. This came after the credit rating agency Standards & Poor lowered the rating of Japan's sovereign debt. The US dollar was not completely out of the woods during the trading session, though. In fact, against the euro, the US dollar remained under pressure. This came after data from the US economy was weaker than expected. This moved many of the investors back during the day from their more strategic and aggressive tactics during the session.
The overall US dollar index moved the US dollar from 77.776 as of the end of trading on Wednesday in North America to 77.707 by the end of the Thursday trading day.
The US dollar fell against the euro during the trading day mainly due to the new applications for jobless benefits report. This report showed that new applications jumped by 51,000 to 454,000 for the week. The US Labor Department stated that weather was likely the reason behind the increase, off of last week's improved numerous. In addition, the Commerce Department in the US noted that US made durable goods also had a poor report. These fell by 2.5 percent in the month of December. 4
The US dollar moved from Y 82.84 against the yen at the end of trading in North America at the end of the Wednesday session to Y 82.26 by the end of the Thursday trading session. It did move as high as Y 83.18 during the session.
The movement of the yen was triggered by the S & P's downgrading of Japanese debt to an AA minus rating. The reasoning for this was that the country's political leaders lack the ability, or "coherent strategy" to handle the debt within the country.
Against the euro, the US dollar improved from US $1.3706 at the end of the trading session on Wednesday to US $1.5933 by the end of the Thursday session in North America. Against the yen, the euro moved up one percent for the day, to move to Y 113.78 overall.
The US dollar was up against the UK pound during the trading day. The US dollar moved from US $1.5912 at the end of the Wednesday trading day to US $1.5933 by the end of the Thursday trading day.