The yen rose, nearing a three-year high versus the euro, as a stocks
rout prompted investors to sell higher-yielding assets including
Europe's single currency.
Japan's currency also climbed the most in a week against the Australian
dollar as the outlook for slowing global economic growth caused
commodities prices to tumble. The dollar rose toward its strongest
level in more than a year versus the euro on speculation turmoil in
financial markets, sparked by a credit crisis, will encourage investors
to buy Treasuries.
The yen was bolstered by speculation investors will pare carry trades,
in which they get funds in a country with low borrowing costs and buy
assets where returns are higher.
The dollar rose against the euro and the yen today on speculation a
Treasury Department report will show international investors increased
purchases of U.S. assets in August.
Foreign investors increased their purchases of U.S. assets in August to
$30 billion in August from $6.1 billion in July, according to a
Bloomberg News survey of economists. The Treasury Department will
release the data at 9 a.m. in Washington.
EUR/USD having opened in area $1,3460, the pair has established a session high on $1,3520 then has decreased in area $1,3350.
GBP/USD having established sessionhigh on $1,7360, the rate continues to be corrected after yesterday's falling.
USD/JPY having established a session low on Y99,23 the pair has receded above level Y100,00.
US data starts at 1230GMT with the weekly jobless claims and CPI data.
Jobless claims are expected to fall 8,000 to 470,000 in the October 11
week after slipping back in the previous week, while analysts expect
September CPI to rise only 0.1% as pump prices fell even further, but
food prices are expected to be up. Data continues with the 1300GMT
release of the Treasury International Capital System data for August
and the 1315GMT release of industrial production and capacity
utilization for September. Industrial production is expected to fall
0.7% in September after the August plunge on a decline in vehicle
production.