Futures Market News
Dollar drops as debt dilemma dithers
Feb 17, 2012 02:42 PM
?Friday saw the world's reserve currency slip in value to the 17-nation common currency but rise against the Japanese yen, MarketWatch reports.
Benefit to the euro is due to optimism regarding Greece and the bailout funds that are likely to be approved early next week, the Aegean nation's second package of international aid since June 2010. Greece is staring at a possible default on loan obligations coming due next month but is on the precipice of insolvency, underscoring need for the bailout.
The value of the Japanese yen is "continuing its weaker trend against the U.S. dollar primarily due to rumblings about long-term debt fundamentals in Japan, and due to (Japan's central bank) monetary policy action, which was an alternative means to weakening the yen," macro strategist Richard Hastings with Global Hunter Securities told MarketWatch.
Bloomberg indicates a report from the U.S. will indicate prominent developmental, growth and advancement indicators increased for a fourth straight month.
As a safe-haven storage, the Japanese yen has lost 6.2 percent of its value during the past month, according to Bloomberg.
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