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Saturday, November 28, 2009
LONDON: The dollar struck a 14-year low against the yen on Friday amid jitters Dubai may default on its debt, which sent global stock markets reeling and prompted investors to exit risky trades.
During Asian trading, the dollar tumbled to 84.82 yen, which was the lowest level since July 1995, but has since strengthened somewhat. In later European deals, the dollar stood at 86.53 yen compared with 86.59 yen late on Thursday in New York. The euro fell to 1.4893 dollars from 1.5019 dollars late on Thursday.
Analyst Jane Foley at online trading group Forex.com said dealers exited assets that are deemed as risky, such as the euro, and sought safety in the safe-haven yen. “The market is taking a breather. Volatility had soared in early hours after the risk trade headed for the exits in thinned liquidity,” Foley said.
She added: “It is likely to take at least a few days before the implications of the impact of a possible default from Dubai are properly digested. For the present it seems that the market is seeing this negative news as a blow to the global recovery but not one that will push it off course.” Gold meanwhile dipped on profit-taking after hitting a record high of 1,195.13 dollars an ounce on Thursday on the back of the weak dollar.
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ISSN 1563-9479 
