SAN FRANCISCO (MarketWatch) - The Japanese Yen and U.S. Dollar Strengthened Against MOST major currency rivals, Finding support from risk-aversive investors worried about sovereign debt In The Eurozone, Japan's nuclear situation and unrest in the Middle East.
Sovereign debt Woes Returned To The Forefront after Moody's Investors Service cut Portugal's long-term debt rating by Two notches to A3 from A1, Renewing Concerns about Portugal's Ability to Avoid a tax bailout.
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"As the European Central Bank Remains unconvinced by The New Governance Program Drafted by the [European Union], The Group Will Certainly Have to weigh Alternative Measures to Curb the risk contagion," he said."But The Renewed efforts fail to restore investor May have confidence's The Government Operating Under the single-currency borrowing against rising Costs."
Against this backdrop, The dollar index, a measure of the U.S. Rivals Unite Against six staff, rose to 76,578 from 76,339 late Tuesday.
The euro to $ 1.3936 Slipped Versus the dollar after Changing Hands at $ 1.40 late Tuesday. The British pound traded at $ 1.6071, off from $ 1.6082 Slightly.
An auction of 1 trillion euros in 12-month debt borrowing saw Costs Rise home kerosene heaters. Meanwhile, Portugal The opposition has Indicated It Will not Support the Minority Government's latest round of austerity measures, Prime Minister Jose Socrates Leading to warn That failure to secure passage to Lisbon force "could seek a bailout from The European Union and International Monetary Fund. Read About the Portugal debt downgrade.
The pound saw pressure after data showed a rise in the British Unemployment Rate to 8% from 7.9% in The Three months ending in January, As The total number of Unemployed hit a level last seen in 1994.
The figures year offset unexpected drop In The number of jobless people Claiming Benefits, Which Slipped icts to Lowest Since February 2009 level.
The U.S. Government Reported disappointing economic data, however, is Wednesday. U.S. housing starts in February Dropped 22.5%, The Producer Price Index jumped 1.6% in January & the current account deficit to $ 113.3 Narrowed Billions in the Fourth Quarter. Read more about the U.S. data.
Yen gainsThe U.S. dollar traded at 80.68 yen, down from 80.73 yen Slightly in North American trade late Tuesday while The euro traded at 112.47 yen, down from 113 yen Tuesday.
Nearly 6% A rebound by Tokyo's Nikkei stock index helped revive list overall risk appetite, safe-haven flows Denting Into the Japanese yen and the U.S. dollar in Asian trade, Strategists said.
Purpose Appeared investors reluctant to press equities, and Other Perceived as risky assets, Further To The upside, With European stocks giving up early gains and U.S. stocks trading lower.
Japan Fought to Contain Crisis icts nuclear Workers have faced a possible new fire and a Breach of Another reactor's containment system At The Fukushima nuclear complex. Read about Japan's efforts to control STIs nuclear crisis.
"As the clearly" worries remain, WE See the Strengthening of the Dollar against all currencies except With The Of The yen, "Said Stephan Maier, currency strategist at UniCredit Bank in Milan, Adding That There Is Currently" no strong rationale "to take a Against the dollar position.
Continued unrest in Bahrain est aussi serving to undercut risk appetite, Strategists said.
The Statement by the Federal Reserve's rate-setting Open Market Committee At The conclusion of Tuesday's meeting to ReAssure Markets Served quantitative easing That Would Remain in place while upgrading the U.S. aussi central bank's economic outlook, Maier said.
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