U.S. Dollar, Japanese Yen Lose Ground Following the Rise in Risk Appetite, CIT Debt Financing

Published July 20th, 2009 - 09:44 GMT

The USD and JPY were under steady selling pressure in Asian trading as improved risk appetite dominated the U.S. session in the wake of positive U.S. data and earnings results last week. The MSCI Asia Pacific ex-Japan index rose to the highest levels since September last year, underpinning risk appetite and commodities were broadly higher including oil, gold and copper, which was a boon for currencies such as AUD and CAD. USD-JPY, which closed around 94.30 in NY, rose to 94.69 highs though exporter offers helped stymie gains. The absence of Japan due to the Marine Day holiday also limited JPY flows. EUR-USD, which closed in NY at 1.4100 on a bout of late stop-loss selling by U.S. names, rallied to highs of 1.4180 before meeting solid offers. News that CIT obtained $3 bln in funding aided the buoyant mood with the market looking ahead to Fed Chairman Bernanke's comments on Tuesday.



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