Dollar Heads North Against Euro And Yen

The U.S. dollar on Wednesday appreciated against major currencies, with the euro losing ground on caution ahead of the approaching Easter holidays and the yen slipping amid hopes for further monetary easing in Japan.

The ICE dollar index , a measure of the greenback against six major global currencies, climbed to 82.977 by late afternoon in Tokyo from 82.86 in North America late on Tuesday.

The WSJ dollar index , which captures the currency’s moves against a slightly wider basket of rival units, gained to 73.59 from 73.47.

The euro slipped to $1.2845 from $1.2861 even as investors appeared more willing to take on risk after worries about Cyprus weighed on the currency in the past few days.

“So far, the euro has been underpinned by the recent resolution on Cyprus, but the pair continues to look heavy. Investors are cautious ahead of the Easter holidays later this week, which will keep the euro within a narrow range,” said Sireen Harajli, a strategist at Credit Agricole.

“We expect that markets will rebuild short euro positions, which will weigh on [the] euro in the near term,” Harajli added.

Against the Japanese currency, both the U.S. dollar and the euro advanced, reflecting improved risk appetite. The yen is widely regarded a safe-haven currency, whose value often rises during periods of market stress and drops under stable conditions.

The greenback  was changing hands at 94.75 yen versus ¥94.46, while the euro  was fetching ¥121.69 versus ¥121.52.

The British pound  was little changed at $1.516, compared with $1.5162, while the Australian dollar  fell to $1.047 from $1.0486.

Marketwatch

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