Dollar Nearing 13-Year Low Versus Surging Yen

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The greenback was mixed versus other majors Monday morning, having plunged to an 8-month low against the surging yen on option-led dollar selling.

Traders flocked to the yen over the past few days after Japanese officials signaled they would not step in to devalue the soaring yen at current levels.

There are no important economic reports scheduled to be released on Monday, leaving traders to pay close attention to movements in equity markets.

The dollar dropped to 88.21 yen late Sunday night, hitting its lowest mark since January. A move below 87.08 would take the dollar to its lowest level since 1995. The yen has become the currency of choice among those looking for a safe haven.

Against the euro, the dollar hit a 2-week high of 1.4556 overnight, but fell from there to 1.4660.

Meanwhile, the dollar hit a 4-month high of 1.5769 against the slumping sterling, then eased a bit to 1.5870. While slumping to yearly lows versus a number of other currencies, the dollar has gained ground against the sterling amid deep concerns about the UK economy.

House prices in the UK rose for the second consecutive month in September and to its highest level in two years, the property information company Hometrack said Monday.

The dollar rose to a 3-week high of C$1.1000 versus the loonie, staying away from a yearly low of C$1.0590 set earlier this month.

On Tuesday, the S&P/Case-Shiller home price index, which tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S., is scheduled to be released at 9 AM. Economists expect a 14.20% year-over-year decline in the 20-city composite house price index for July.

(Market News Provided by RTTNews)