The US dollar rose slightly in anticipation of the OPEC meeting and other events
The US dollar rose slightly against the yen and euro in Asian trading on Tuesday. At the same time, many investors took a wait before important events expected this week, shutting down the OPEC meeting on Wednesday and the Italian referendum on Sunday.
Intraday USD / JPY peaked at 112.25 after falling to 111.62 at the beginning of the first half of the session. At 04.50 GMT, the pair is trading at 112.10 against 111.92 late Monday in New York.
Wall Street Journal dollar index, which reflects the US currency against a basket of other major currencies, rose 0.09% to 91.53. Intraday EUR / USD was trading at 1.0598 against 1.0612 late Monday.
"Obviously, investors still take a wait"- says Susuke Yamada, a senior currency strategist at Merrill Lynch Japan Securities. Investors monitor the possible decision of OPEC meeting which will be held on Wednesday in Vienna, in the United States for employment data on Friday and the referendum in Italy on Sunday, he said.
"It is true that the upward momentum (dollar) while weakening. But the dollar / yen pair may target the 115,120 in the medium term"Approximately, by next year, says Yamada.
The dollar rose sharply after the presidential elections in the US, reaching eight-month high 113.90 yen last week. Investor confidence has grown in terms of economic growth in the US and the prospects of higher interest rates, as the president-elect Donald Trump promised to expand fiscal stimulus. But the further growth of the dollar has been hampered this week.
It is too early to talk about the reversal of the upward trend of the Dollar / Yen says Takuya Kanda, senior analyst Gaitame.Com Research Institute. Yesterday the dollar fell below its moving average for the first five days after the US elections, held on 8 November.
But, as they say market participants, investors can buy when you first fall in a bull market, says Kanda. Later in the for investors will be watching whether the dollar will recover to the moving average for five days, which is now around 112.50 yen, he added.
With respect to other currencies, the euro / yen at the time of this writing, trading at 118.64 against 118.79 on Monday.