By TraderVox.com
Tradervox.com (Dublin) – Japanese yen appreciates against its major counterparts as Asian stocks declined. The drop came as US lawmakers struggled to reach a consensus on fiscal cliff issue boosting demand for safe-haven assets. The currency appreciated to its strongest in one week against the US dollar after Harry Reid, the US Senate Majority Leader, indicated that he was unhappy with the progress made in solving the fiscal cliff issues. The euro dropped over the yen for a third day before data forecast showed Germany’s jobless rate rose to the highest level. Daisaku Ueno a senior foreign exchange fixed income strategist in Tokyo at Mitsubishi UFJ Morgan Stanley security Co, said that continued negotiation over the fiscal cliff will create unacceptable environment due to fall of dollar over yen as euro is most likely to edge down from perspective of economic fundamentals.
Japanese currency gained 81.79 per dollar, the strongest it has been since Nov.21, before selling at 81.83 during mid-day trading in Tokyo, which is 0.4% stronger than yesterday’s close. 17-nation currency has lost 0.6%to105.76 yen and 1.1% this week. The dollar has gained 0.1% to 0.2% when it was bought $1.2925-$1.2943 per euro from yesterday. The Japanese currency appreciated as Asia Pacific Index of shares dropped by 0.5 percent the same as the Standard & Poor’s 500 stock Index.
The dollar index was marginally changed at 80.399 after advancing by 0.2% yesterday. The dollar index is used by Intercontinental Exchange Inc. to track US dollar against six currencies. Makoto Noji, a currency strategist at SMBC Nikko Security Inc in Tokyo, said that due to worries over the U.S fiscal cliff and global economy are at risk. Due to limited demand for the euro, there is a sign of drop in the economic growth in Europe while in Germany unemployment rate stood at 6.9% in the region biggest economy.
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