* U.S. retail sales drive dollar to 5-year high vs yen
* Tight liquidity helps euro; banks to repay LTRO cash early
* Swiss franc hits 30-year high vs yen
* Yen carry trade seen back in fashion
By Laurence Fletcher
LONDON, Dec 13 (Reuters) - The dollar and euro rose to
five-year highs against the yen on Friday, driven by upbeat U.S.
data before the Federal Reserve's meeting next week and
dwindling excess cash in the euro zone banking system.
The yen also slumped to a three-decade low against the Swiss
franc, with some attributing the broad-based decline to a
resumption of its role as a conduit for carry trades given the
Japanese central bank's continued commitment to an ultra-easy
monetary policy.
The franc has been buoyed by Swiss banks repatriating money
before the year-end.
The dollar rose 0.2 percent to 103.57 yen, having hit
103.925 yen in Asian trading, its highest level since October
2008. The euro earlier hit 142.82 yen and was recently flat
against the yen at 142.14 yen.
So far this year the dollar has gained 19 percent against
the yen while the euro has risen 24 percent, on expectations the
Bank of Japan will provide even more stimulus next year.
The dollar found strength from upbeat U.S. retail sales data
and the smooth passage through the House of Representatives of a
budget deal to avoid a government shutdown.
Both are seen as adding to the possibility the Fed could
start scaling back its massive bond buying stimulus as early as
next week, although the consensus is still for March.
The dollar was supported by rising Treasury yields, with the
yield differential of two-year U.S. bonds over German
two-year yields rising.
"The economic fundamentals are so much better than in May
and June when (the Fed) started talking about this (tapering),"
said Marshall Gittler, head of global FX strategy at IronFX
Global, who thinks the Fed will begin tapering next week.
"If they thought it was a good idea in May, then they must
think it's an even better idea now."
He said he expects dollar/yen to reach 130 yen by the end of
next year as Japan's economic struggles come to the fore.
"A lot of tapering-related long dollar positions were
flushed out last week," said Ian Gunner, portfolio manager at
Altana Hard Currency Fund. "Now they're starting to come back."
The Swiss franc rose to 116.68 yen, its highest
level since early 1983, in Asian trading although it later fell
back to 116.23 yen.
"(It's) driven by Japanese banks funding the global carry
trade in a risk-on environment, while Swiss banks are reducing
the size of their balance sheets, cutting foreign exposure,"
said Morgan Stanley analysts in a note.
The euro received support as two-year swap rates rose to
their highest levels in a month. The European Central Bank said
on Friday that banks will return 22.65 billion euros of crisis
loans, above analysts' forecasts, to it next week, tightening
liquidity in the bloc.
Citi strategist Valentin Marinov said this can help push the
euro higher for now but it isn't positive for the euro
longer-term as tightening liquidity hits lending and growth.
Liquidity usually tightens towards the end of the year, when
banks hold off from lending to each other.
The euro has shrugged off some poor recent economic data,
particularly in France, to surprise many analysts and move
higher since the summer.
This year, another factor driving euro strength is European
banks repatriating funds to shore up their capital bases before
a European Central Bank Asset Quality Review (AQR).
The Australian dollar fell to its lowest in more than three
months after central bank governor Glenn Stevens said he would
prefer to see the local dollar lower as a boost to trade-exposed
sectors of the economy. It was recently down 0.2 percent at
$0.8919.
Where to buy Nescafé Coffee, Mocha Cappuccino Mix, 32 Ounce Bags (Pack of 6)
Reviews Morningware Halo Oven Deluxe
Check Price Montel Williams Living Well 5Qt. Pressure Cooker w/ Cookbook
Find MIU France Stainless Steel Double Wall Ice Bucket, Silver
How to buy Milo Kitchen Island with 2 Drawers
Find Measuring Pans/Butter Warmers: 2 Cup
Where to buy Masahiro 14904 MVH 6 inch Utility Knife
Where to buy Magic Chef Mcm990W .9 Cubic Feet 900 Watt Microwave With Digital Touch, White
Reviews Lorren Home Trends RCR Fusion Whiskey Set, 7 PieceB009AV2D5K, Lenox Minstrel Gold 5 Piece Place Setting
How to buy Corelle Impressions Shadow Iris 18 Piece Dinnerware Set, Service for 6
How to buy Nescafe Dolce Gusto Melody II Single Serve Coffee Machine, Black
Find Hamilton Beach 63327 6 Speed Stand Mixer
Find FoodSaver V3835 Vacuum Food Sealer with SmartSeal Technology
How to buy Pomaireware Clay Steamer Pot with Insert and Lid
How to buy Nambe Copper Canyon Wine Chiller, 7 1/2 Inch by 4 1/2 Inch
Reviews Folding Corner Bakers Rack Four Shelves Black
Online J.A. Henckels Twin Pro S 8 Inch Chef's Knife with Hollow Edge
Online Foodsaver T000 03450 Game Saver
Reviews Solid Pine Table in Walnut
Find Easy System 6 Quart Stock Pot Gray Kitchen Essentials From Calphalon
Find Sagaform Melamine Stackable Bowl Set, Assorted Colors, Set of 4
Where to buy Rogar Cherry Hardwood Tripod
Where to buy River City Clocks 15 Minute Antique Wood Sand Timer, 10 Inch Tall
Find Rev A Shelf 6942 24 11 52 24" Pie Cut 2 Tray Lazy Susan Set, White
Check Price Reclosable Hot Cup Lid in White
Find Reed & Barton Soho Covered Butter Dish, Clear, One
SizeB00CLFM7UI, Ralph Lauren Veranda Paisley Sand Tablecloth ~ 70" Round
Reviews Molecular Gastronomy Essentials Kit
Reviews Maxim Dual Travel Mug Coffee Maker
Online Le Creuset Stoneware Set of 2 Condiment Dish and Spoon Set, Dijon
How To Buy Jeweled Mirror Canisters 4 Piece Bathroom Accessory Set
Where to buy Jaya Biodegradable Cutlery (Spoons, Forks, Knives), 24 Count Packages (Pack of 24)
Reviews Induction Ready Cookware, Empire Collection Pro ware 7 Piece Set
How To Buy Hoffmaster 220836 Linen Like Color In Depth Tablecover, 108" Length x 50" Width, Black (Case of 20)
Online Green Mountain Coffee Hazelnut DECAF 108 K Cups + 12 Bonus K Cups
Check Price Gourmet 3 Piece Pot Set
How To Buy FancyCook 8 Piece Enameled Cast Iron Mini Garlic Shape Casserole
Reviews Espressione 1332 A Cafe Charme Espresso/Cappuccino Machine, Anthracite Gray
Check Price Escali 115NWR Portable Nutritional Tracker, Warm Red
How To Buy Enclume PR18 36 HS Premier 36 Inch Ceiling Bar, Hammered Steel
Online Pme Arts Crafts Ltd Swan shaped Cake StandB00260G4ZW, Emile Henry 8 Inch Salad/Dessert Plates, Set of 4, Nougat
Online Anchor Hocking 90006 3 1/4" Diameter x 3 3/8" Height, 7 oz New Orleans Rock Glass (Case of 36)
Online Wusthof Gourmet 3 Piece Essentials Set with Chef's Knife, Parer, and Shears
Check Price GelPro Plush 18 by 24 Inch Anti Fatigue Kitchen Mat, Basketweave, Black
How To Buy Tramontina Prima 8 Quart 18/10 Stainless Steel Tri Ply Base Covered Stock Pot
Reviews Larry's Beans Fair Trade Organic Coffee, Authentic Nicaragua, Whole Bean, 5 Pound Bag
Online Kitchen Selectives Over Easy Omelette Express
How To Buy WEARWELL Rejuvenator Pre Cut Anti Fatigue Mats
Where to buy Maxwell House Special Delivery Ground Coffee, 1.4 Ounce Packages (Pack of 112)
How To Buy Mamma Ro Pedestal Fruit Bowl, Apple
Where to buy Joyce Chen 90 0053, 16 Ounce Japanese Tetsubin Cast Iron Year of the Rabbit, Dark Yellow
Where to buy All Clad 7201.5 Master Chef 2 Stainless Steel Tri Ply Bonded Dishwasher Safe Saucepan Cookware, Silver
Check Price Japanese Sushi, Wasabi Plates, Bowls & Spoons Set in White & Black
Find Wusthof Classic 5 Inch Cook's Knife
Find Old Dutch 102BZ Dome Oiled Bronze Pot Rack with 16 Hooks, 20 by 15 1/4 by 21 Inch
How To Buy Colombian Fair Trade Select Two 80 Count Boxes (160 Total) K Cups Coffee For Keurig Brewers (Medium Roast)
Where to buy 2 Quart Black Half Kettle Chrome Handle
Online Teavana Noble Poppy Bone China Tea Set
Online Nostalgia MOS 400 Margarita Oasis Frozen Drink Machine with 36 Ounce Glass Pitcher
Find Island Bamboo 23 By 18 Inch Encinitas Professional Butcher Block
How To Buy CeraGrav LP 5 by AquaCera HDPE Gravity Filter System
Reviews Tramontina 6.5q Cast Iron Dutch Oven Casserole
Online Calphalon Tri Ply Stainless Steel 3 qt. Sauté Pan & Cover
Where to buy Tojiro DP 7 inch Hollow Edge Santoku Knife
Check Price Etac Deluxe One Handed Paring Board One Handed Paring Board Model 3022
Find Aqua Pure AP EASY COMPLETE Water Filter Replacement Cartridge, Quick Change
Where to buy M Series Professional Scales in Silver Gray, Stainless Steel
Online Everpure OW200L Replacement Filter CartridgeB0046RDVSQ, Oneida Gourmet Pro Hard Anodized 10 Piece Set
Find UVMax 602806 Replacement Lamp for Models E/Plus, E4/Plus, Pro7
Check Price SILICONE BREASTFORM SIZE HH(13)
Check Price Arda Clam 12 Inch Dinner Plate, Silver Amber, Set of
4B005QVMAAG, Mission Look Arm Chair (Set of 2) by Coaster Furniture
Online 30" Square Glass Table Top 1/2" Thick 1" Beveled Edge
Where to buy 3 PC Wooden Cappuccino Dining Set (1 Table +2 Chairs)
Online 22 Inch Roll Out Shelf 24 Inch Width
Where to buy 19 Piece Mirage Deluxe BBQ Set w/ Aluminum Case
Online 16 X 20 Almond Graphic Built in Surface Saver Tempered Glass Cutting Board with Stainless Steel Frame
Find 12"x16" Electric Skillet
Reviews Premium Peb105 Single Burner
How To Buy Appliance Art Chef Refrigerator Magnet (SXS) Cover
Reviews Zwilling J. A. Henckels Miyabi 5000S Shotoh, Small Utility Knife
Check Price Zhen Japanese Steel 8" Chef Knife set + 10.5" Bread Knife
Reviews Zelco 16512 Mangia Casualware 6 pc. Set White
Online ZACK 20072 LINUS cruet set with funnel
Where to buy Yogi Tea Joint Support Organic Turmeric Root 16 Tea Bags, Pack of 18
How To Buy Wooden Decorative Trays with Inlay Set of 3
Reviews Tramontina Gourmet Enameled Cast Iron Covered Round Dutch Oven
Gradated CobaltB001AS80KI, Winware Stainless Steel 20 Quart Brasier
with Cover
Find Wusthof Classic 4.5" Multi prep Knife
Where to buy Koolatron Medical and Cosmetic Fridge
Reviews Blendtec 40 601 04 64 Ounce Jar for Blendtec Blenders
Online Emile Henry 1 Quart Individual Pasta Bowls, Set of 4, Cerise
Find 16PC SET TWLIT GROVE
Check Price Waterford Lismore Claret Pair
Reviews Timothy's World Coffee Mocha Java 120 K Cups
Check Price GAS MODULE A
Reviews Happy Everyting Black Cookie Jar
Find SmartPower Deluxe Blender Color: Metallic Silver
How To Buy Microhearth Cookware Set (Everyday Pan Combo & Grill Pan) for Microwave Oven, Black
Check Price Roma Food Strainer Deluxe and Sauce Maker Including Five Screens
How To Buy KitchenAid KFP740qbf 9 Cup Food Processor, Yellow
How To Buy Carte Postale Pin Board, 27.5x2.5, BLACK BEIGE
Find Barbecue Genius 18650 Stainless Steel Cooking Grids
No comments:
Post a Comment