This has come after the Group of 20 governments agreed to keep stimulus measures and remained silent on the greenback’s decline this year. It was the New Zealand’s dollar that gained the most in more than a week as Auckland-based Fonterra Cooperative Group Ltd., the world’s biggest dairy exporter, raised its forecast for milk prices by 19 percent because of growing global demand.

The senior strategist in Tokyo at Mizuho Trust & Banking Co Masahide Tanaka, said “Overall, economic data are turning positive, demand remains strong for commodity and higher yielding currencies.”

To read more on this story go to bloomberg.com.

The Japanese yen is likely to return to a 13-year high according to Royal Bank of Scotland (RBS), this is due to the banks that sold derivatives linked to the Yen are forced to hedge payments to investors.

Societe Generale SA, Frances second largest bank believes that the Yen could be pushed 80 per dollar the end of the year due to securities companies need to buy the currency to hedge anything up to $100 billion that is related to so-called power reverse dual currency notes.

Britain’s fifth largest bank, RBS say hedging should push the currency to 85 against the dollar.
On October 24 this year, Japan’s Yen rose to 90.93 per dollar, this being the strongest since August 1995. The Yen currency last traded in Tokyo at 97.74 versus the dollar at 12:29pm.

Source: Bloomberg