Very likely, the Japanese yen
will remain volatile in the foreign exchange market over the next several years in response to both the uneven pace of the economic recoveries in the U.S.
CMC and Ritek have confirmed that part of Japanese suppliers' capacity of CD-R discs, DVD and blu-ray discs has actually been switched to Taiwan in the form of outsourcing, when the Japanese yen
has unceasingly risen this year.
At the end of the quarter, the current values of the German and Japanese yen
reserve holdings totaled $18.0 billion for the Federal Reserve System and $15.1 billion for the Exchange Stabilization Fund.
dollar in the third quarter, slightly higher than the evaluation of renminbi but lower than Japanese yen
and Korean won.
Following are the middle exchange rates for leading currencies against the euro, according to Reuters: CURRENT HIGH LOW US Dollar 1.2294 1.2312 1.2194 Japanese Yen
108.6 108.84 107.52 British Pound 0.8236 0.8244 0.8168 Swiss Franc 1.3176 1.3209 1.3074 Danish Crown 7.4479 7.4493 7.4476 Greek Drachma - - - Norwegian Crown 8.0164 8.02 7.96 Swedish Crown 9.5835 9.602 9.5262 Australian Dollar 1.4669 1.4683 1.4446 Canadian Dollar 1.3107 1.3115 1.298 Hong Kong Dollar 9.5762 9.5898 9.4961 Russian Rouble 38.4433 38.45 38.1825 Singapore Dollar 1.7169 1.7198 1.7087
While investors' concern on the stability of Japan's financial system has added pressure to the Japanese yen
, dealers said they are not sure about the strength of the dollar either.
At the end of the quarter, the foreign currency reserve holdings of the Federal Reserve System and the ESF were valued at $19.5 billion and $16.1 billion, respectively, and consisted of German marks and Japanese yen
Investors were keen to buying the dollar and the Japanese yen
which put the euro on the back burner; hence, its drop against major currencies.
Following are the middle exchange rates for leading currencies against the dollar, according to Reuters: CURRENT HIGH LOW Euro 1.2312 1.2351 1.2253 Japanese Yen
89.63 89.77 89.43 British Pound 1.4926 1.4974 1.4857 Swiss Franc 1.1001 1.1046 1.0994 Danish Crown 6.046 6.0743 6.0263 Norwegian Crown 6.4943 6.5449 6.485 Swedish Crown 7.759 7.8254 7.7579 Australian Dollar 0.8654 0.868 0.8596 Brazilian Real 1.7846 1.7846 1.7825 Canadian Dollar 1.0396 1.0442 1.0396 Hong Kong Dollar 7.7783 7.7796 7.7775 Mexican Peso 12.6996 12.7636 12.7032 Russian Rouble 31.1405 31.2535 31.045 Singapore Dollar 1.391 1.3967 1.39 South African Rand 7.6435 7.6875 7.59
This dynamic served to support the currencies and credit markets of the higher-yielding European countries, including Italy, Sweden, and Spain, at the expense of lower-yielding currencies, such as the Japanese yen
. The generalized weakness in the yen helped support the dollar-yen exchange rate.