SYDNEY/ SINGAPORE, Dec 5- The yen hovered above a five-year low on the euro and a six-month trough versus the dollar on Thursday, with moves lacking conviction as investors held their bets ahead of key events, including crucial U.S. jobs data.» Read More
Japanese annual inflation hit a decade-high 1.2 percent in March, as energy prices soar, but the central bank is expected to sit tight on interest rates in the face of a soft economic outlook at home and abroad.
The dollar rose broadly Thursday after government data showed signs of resilience in the U.S. labor market, while a key consumer confidence measure in Germany plunged, weighing on the European currency.
The euro had its biggest drop against the U.S. dollar in three weeks Wednesday, as soft economic data and comment from European policy-makers indicated the weaker U.S. currency is hurting euro zone economic growth.
The euro roared to another record high Tuesday, crossing $1.60 in late afternoon trading in Europe after a pair of ECB governors said high inflation may cause the bank to raise interest rates.
The dollar fell broadly on Monday after weaker-than-expected Bank of America profits damped investors' initial optimism that companies may escape the pinch of the crisis in global credit markets.
For the week ending Friday, April 18, 2008 the US Markets ended the week rallying on earnings news. The Dow had its best week since Feb 1 and rallied 256.8 points on Wednesday and another 228.87 points on Friday, for its biggest point gains since April 1st.
The dollar touched a seven-week high against the yen and pulled further away from a record low versus the euro Friday after Citigroup earnings contained less damage from the crisis in credit markets than some had expected.
Bank of Japan Governor Masaaki Shirakawa said on Friday that the economy was slowing due to rising energy and raw materials costs, but he maintained that it would likely pick up gradually.
The euro retreated from a record high against the dollar in choppy trade Thursday after a top euro zone official called recent euro appreciation "undesirable."
The euro pushed to a new record high Wednesday after a lower-than-expected gain in U.S. inflation last month and a sharp fall in housing starts boosted the case for more Federal Reserve interest rate cuts.
The dollar extended gains on Tuesday after U.S. Treasury data showed foreigners increased purchases of U.S. assets in February, easing some concern that the credit crisis would dry up U.S. capital inflows.
The dollar was mixed against European and Asian currencies Monday after the Commerce Department reported that retail sales edged up in March.
For the week ending Friday, April 11, 2008 the US Markets ended the week in negative territory. There was not a lot of movement in the markets for most of the week, as the major indices traded on a mix of news including same store sales, record highs in oil, flight cancellations from major airlines, and disappointing first quarter results from Alcoa (AA). The markets tumbled on Friday on General Electric's (GE) disappointing earnings.
The yen rose broadly after a fall in industrial conglomerate General Electric's quarterly earnings stoked fears about the health of the US economy, causing investors to dump riskier trades.
The dollar fell to a record low against the euro Thursday, but pared losses as European Central Bank President Jean-Claude Trichet did not drastically change his growth and inflation views for the euro zone.
The dollar extended its fall against the yen Wednesday, dropping to session lows as U.S. stocks deepened losses after a surge in oil prices.
The Bank of Japan left its interest rate target unchanged at 0.5 percent on Wednesday, as expected, in a unanimous vote.
The U.S. dollar edged lower versus the euro on Tuesday as minutes of the last Federal Reserve meeting showed policy makers felt that a prolonged and severe economic downturn can't be ruled out.
The U.S. dollar held steady against the euro Monday in European trading at the start of a week that will see the latest interest rate decision from the European Central Bank.
Japan's government put forward acting central bank governor Masaaki Shirakawa on Monday to head the Bank of Japan permanently, finally finding a candidate the veto-wielding opposition is likely to back after weeks of deadlock.