(RTTNews) - The U.S. dollar and the Japanese yen strengthened against their major counterparts in Asian trading on Wednesday as the persistent eurozone woes prompted traders to continue betting on safe haven currencies.
The dollar and yen are considered as safe haven currencies as these nations have lower lending rates. These currencies tend to gain in times of financial turmoil and vice-versa.
Investors remained cautious amid uncertainty about the ability of the newly appointed leaders in Italy and Greece to push through severe austerity measures that are needed to get bailout funds and rein in their respective sovereign debt problems.
The yield on the Italian 10-year jumped back above the crisis threshold 7 percent on Tuesday, even as new Prime Minister Mario Monti worked to assemble his cabinet of technocrats.
Spanish yields also rose on Tuesday amid concerns that a euro area recession will prevent timely repayment of debt.
France has become the latest euro zone member to come under pressure after a spike in its borrowing costs on jittery bond markets, fueling concerns that the euro zone's second biggest economy was also being sucked into the spiraling debt crisis.
The yen is currently trading at fresh 5-week highs of 83.73 against the franc and 103.65 against the euro, compared to yesterday's close of 84.20 and 104.32, respectively. The next upside target level for the yen is seen at 83.0 against the franc and 103.0 against the euro.
As widely expected, the Bank of Japan today decided to retain its rates at 0.1 percent.
Against the pound, the yen is presently trading near a 3-week high of 121.50 with 121.0 seen as the next upside target level. At yesterday's close, the pound-yen pair was quoted at 121.93.
The yen is trading at a 1-month high of 77.70 against the Australian dollar and if the yen gains further, it may likely target the 77.0 level. The aussie-yen pair ended yesterday's trading at 78.45.
The yen that closed yesterday's trading at 75.49 against the Canadian dollar is now worth 75.05. On the upside, 74.5 is seen as the next target level for the Japanese currency.
Against the New Zealand dollar, the yen is now trading at more than a 5-week high of 59.04, compared to yesterday's close of 59.45. On the upside, 57.4 is seen as the next target level for the yen.
The U.S. dollar also rose, hitting fresh 5-week highs of 1.3438 against the euro and 0.9212 against the franc and near a 4-week high of 1.5760. If the dollar advances further, it may likely target 1.340 against the euro, 1.570 against the pound, 0.932 against the franc. The dollar closed yesterday's trading at 1.3539 against the euro, 0.9155 against the franc and 1.5825 against the pound.
(RTTNews) - The U.S. dollar that closed yesterday's trading at 1.0211 against the Canadian dollar strengthened to a 5-week high of 1.0277. The next upside target level for the greenback-loonie pair is seen at 1.040.
The US dollar surged up to near a 6-week high of 0.7660 against the NZ dollar, compared to yesterday's close of 0.7715. On the upside, 0.747 is seen as the next target level for the US currency.
Against the Australian dollar, the US dollar climbed to a 6-day high of 1.0075. If the greenback rises further, it may likely target the 1.005 level. At yesterday's close, the aussie-greenback pair was quoted at 1.0182.
But the dollar eased against the yen after hitting a high of 77.16 at 9:25 pm ET. The dollar-yen pair is now trading near yesterday's close of 77.05.
Traders are now likely to focus on the European session, in which the U.K. jobless claims for October, Bank of England's quarterly inflation report and the Eurozone CPI for October due.
The U.S. CPI, industrial production, NAHB housing market index - all for October and the Treasury Department's report on the flows of financial instruments into and out of the U.S. for September are scheduled for release in the New York morning session.
Investors will also closely watch Italian Prime Minister designate Mario Monti's meeting with the nation's president later today to present a new government.
