Asbytec

Dollar Could Be Headed to 13 Year Low Against the Yen

The recent dollar decline is due to many factors. First, the libor rate has decreased demand for the dollar. And risk aversion has given way to yields, so the euro has become more attractive as the ECB signals little room to move on interest rates.

This will change. The ECB will most likely have to cut rates, despite the better than expected economic data. The new year should trigger a return to risk aversion.