Monday Morning In Asia Forex

Here's the combined news excerpts from the Bloomberg and the Dowjones.com.The dollar rose against the yen in Asian Forex Market Monday as players' sentiment toward the unit recovered slightly on positive expectations for the U.S. government's countermeasures to deal with the financial crisis. Players said the greenback may strengthen against the yen further this week, but at a gradual pace, and warned its downside risks still remain over the longer term. The yen fell to a one-week low against the euro and declined versus the dollar on speculation government efforts to rescue ailing banks will revive global credit markets.

President-elect Obama’s inauguration Tuesday can be expected to be positive for the dollar only in the short run. Dollar also rose on the US treasury’s statement that it is planning to bring in extra $20 billion into the Bank of America. Other dealers are apprehensive about dollars performance as Japanese exporters have recently been aggressively selling the greenback for account settlements.


For the rest of the global day, dealers said the greenback may not raise much ahead of Martin Luther King Jr. Day in the U.S on 19th January. Meanwhile, the euro's moves ahead will probably depend on the performance of equity markets worldwide. On Monday, it was higher against the dollar and the yen.

If stock prices rise further, the euro will likely gain against the dollar and yen. Usually when stock prices climb, players tend to be more aggressive about buying assets with higher returns, which often involves euro buying.