Dollar Rises to 9-Month High Versus Yen; Euro Capped

The policy of world’s largest economies of quantitative easing that is purposed to stimulate the fragile market has now started raising questions and concerns over whether it will actually prove successful over the long-term.   

Bloomberg reports Euro Drops in Longest Losing Streak Since 2010 on Debt Turmoil The euro fell for a fifth week versus the dollar in its longest losing streak in almost two years on concern Europe’s debt crisis is worsening and as data showed the U.S. labor market is strengthening.

On Monday the Nikkei share average increased to a near 5-year high after investors supported Bank of Japan’s decision to purchase long-term bonds. The Australian branch of General Motors, General Motors Holden announced that it will dismiss 500 or 18% of its employees. Today the Japanese yen reached a new low versus major currencies following Bank of Japan’s purchase of government bonds. The Indian rupee raised again versus the dollar, reaching 54.70 per dollar.  

Tim Duy once again: What Does Japan Mean For The Rest of the World?, by Tim Duy: Is Abenomics about boosting exports or domestic demand? I tend to agree with Lars Christensen on this issue:

Bank of Japan announced its new plan to double its monetary base in just two years using an aggressive purchase of long-term bonds, reported Financial Times.   

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.The article below comes courtesy of Central Bank News, an authoritative source on monetary policy developments.

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