Dollar drops to 3-week low versus yen

Fri Nov 9, 2012 4:21pm IST

The dollar fell to its lowest in three weeks on Friday as hedge funds sold the U.S. currency on growing concerns about the looming fiscal problems in the United States which could drive the economy into a recession.

The dollar dropped to 79.21 yen on trading platform EBS, its lowest since Oct 19 and down 0.3 percent on the day. Traders cited stop-loss sell orders below 79.20 yen.

The yen is the most sought after currency at times of financial stress and doubts about an economic recovery.

The dollar's drop mirrored narrowing spreads between the yields on two-year U.S. Treasuries and Japanese government bonds. The currency pair has a robust relationship with that spread.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Addressing India's Infra Needs

REUTERS SHOWCASE

Climate Change

Climate Change

Climate change to cut South Asia's growth 9 percent by 2100 - ADB.  Full Article 

Ballmer Exits

Ballmer Exits

Ex-CEO Ballmer quits Microsoft board to focus on NBA's Clippers  Full Article 

Brent Prices

Brent Prices

Brent holds near 14-month low on plentiful supply.  Full Article 

A Man's World

A Man's World

Despite lip service, Silicon Valley venture capital still a man’s world.  Full Article 

Needless Spending

Needless Spending

Exclusive - Icahn says Family Dollar wasting over $300 mln in breakup fees .  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage