Dollar slides to 15-year low against yen

yen.pngClick chart to view current rates. By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- The dollar sank to a fresh 15-year low against the yen Tuesday, after Japanese Prime Minister Naoto Kan, who has been reluctant to intervene in the market to curb the Japanese currency's rise, fended off a leadership challenge.

"The reelection of Kan means that the risk of Japanese intervention is off the table for now," said Boris Schlossberg, director of currency research at GFT Forex. "Investors will drive the dollar lower to test the government, and may just twist its hand so it has no choice but to intervene."

Investors have been looking for the Japanese government to jump in to limit the currency's rise, as a stronger yen can hurt profits at Japan's export businesses.

Kan defeated rival Ichiro Ozawa. Ozawa has been more vocal on plans to boost stimulus measures and weaken the yen, which has climbed nearly 12% against the dollar since early May

The dollar fell as much as 0.8% to ¥83.07 overnight. It recouped some losses after a better-than-expected report on U.S. retail sales eased fears about an economic slowdown, but remained 0.4% lower at ¥83.40 in morning trade.

Meanwhile, the dollar slipped below parity versus the Swiss franc, allowing the Swiss currency to climb to its highest level versus the greenback since December 2009.

"There's been some talk that the Swiss National Bank will raise its key interest rate Thursday at its monetary policy meeting, so there is massive speculative momentum lined up against the dollar," Schlossberg said.

That led to a broad sell-off of the buck, which was down 0.5% against the euro and 0.3% against the British pound.

Schlossberg believes investors will refocus on the economy which could help the dollar stabilize.

"U.S. economic data remains key, and figures that show the economy is slowing but is far from spiraling into another recession will be friendly toward the dollar," he said.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.01%4.03%
15 yr fixed3.12%2.97%
5/1 ARM3.11%2.99%
30 yr refi4.04%4.09%
15 yr refi3.15%3.05%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,959.44 154.64 0.87%
Nasdaq 4,781.42 16.04 0.34%
S&P 500 2,078.54 7.89 0.38%
Treasuries 2.16 -0.01 -0.64%
Data as of 5:51pm ET
Company Price Change % Change
Gilead Sciences Inc 92.90 -15.55 -14.34%
Bank of America Corp... 17.71 0.09 0.51%
Apple Inc 112.94 1.16 1.04%
General Electric Co 25.71 0.09 0.35%
Facebook Inc 81.45 1.57 1.97%
Data as of 4:00pm ET

Sections

Private equity titan CEO David Rubenstein drops some rhymes in a holiday message to investors. More

Sure you could spend more this holiday, but your better bet is to put the money you save in your 401(k). More

Unilever sued Hampton Creek over its egg-free mayonnaise spread Just Mayo. But the company behind Best Foods and Hellman's mayonnaise has now dropped the lawsuit. More

Retired union workers could see their pensions cut under a controversial new law, but many say they're not sure how they'll make ends meet if big cuts go through. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.