Forex News
May 28, 2013 @ 7:42 am

Yen gives back recent gains vs USD

The yen gave back recent gains against the dollar as Asian equity markets moved higher on Tuesday, with Japanese stocks rebounding while the Nikkei 225 Index closed up 1.2 percent.

The US dollar bounced off a two-week low against the yen, boosting exporters as USDJPY traded at 101.97. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

In other currencies, the Australian dollar was also outperformed, edging up against its US counterpart but still remained within close range of an 11-month low.

AUDUSD hit a session high of 96.53 US cents during late Asian trading, and subsequently consolidated at 96.56, adding 0.25 percent.

Focus is on the US dollar as markets waited for the release of US consumer confidence data later in the day.

Meanwhile, speculation over a near-term end to the Federal Reserve’s bond-buying program will help support USD if the Fed scales back its $85 billion-a-month asset purchase program.

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