The U.S.D Vs The Yen

Yesterday, the U.S dollar has hit a four-year high against the Yen. The U.S economic data has given full strength to the dollar in the currency market. The dollar is continuing its gains from many days against the Yen. These days the news from United States is very commanding and too positive. There were beliefs in the past that the Federal Reserve may loosen the U.S monetary policy. But once the U.S.D is doing well, all beliefs came to an end.

This Week Federal Reserve is going to hold a Policy-Setting Meeting to discuss regarding the monetary policy. It is said that they are going to analyze the manufacturing data and the Employment data in-order to review their monetary policy.

On the other hand, the Japanese Economic data and the retail sales data are very disappointing. The data didn’t allow anybody to assume that the yen may recover in the future. The Economic status in Japan is very weak. The Yen fell to almost four-year down to the dollar. And it also fell against the Euro by 0.3%.

Every investor is looking for a carry trade against the yen and buying high-yielding currencies by selling the yen since at present the yen is the one and only low-yielding currency.

Let’s see whether the policy-setting meeting by the Federal Reserve turns out to a boon or bane to the poor-yen.