Dollar and euro make gains against the yen

Published: 20 Nov at 11 AM Tags: Euro, Dollar,

The yen has fallen to its lowest level in seven years against the dollar and a six-year low against the euro. The Japanese currency has been under pressure since the Bank of Japan announced stimulus measures in October.

The dollar climbed as high as 118.09 yen and the euro hit 148.05 yen, an increase of 1.1 percent. The dollar stalled briefly when minutes of a meeting at the US Federal Reserve showed that attitudes were more dovish than a post meeting statement had indicated.

Fed members appear to be little concerned with the current strength of the US currency. This is unlike the attitudes of most other central banks where weaker currencies are preferred. It is likely that the dollar will make further gains and analysts are looking for the greenback to hit 120 yen by the end of next month.

Because the market is clearly focused on the yen there has been little movement between the euro and the dollar. The single currency edged a tad higher at $1.2553. The euro is also up against the Swiss franc after the central bank voted against a proposal to invest in more gold.

The euro hovered at 1.2010 francs. Sterling also gained to trade at $1.5680.