Earlier today, the Dollar climbed against most of its major counterparts ahead of U.S. data due that is forecast to show that consumer confidence has improved while home prices have also risen.
The Conference Board's index of U.S. consumer sentiment, due out today, is expected to have climbed to 71 in May, it highest level in six months, from 68.1 in April.
Also due out today is the release of the S&P/Case-Shiller index of property values. This is expected to sow that values in 20 U.S. cities have risen by around 10.2% in March from March 2012. This would be the highest rise since April 2006.
As a result, after the close of markets in the U.S. and U.K. yesterday for public holidays, the Dollar Index, which Intercontinental Exchange Inc. uses to track the Dollar against the currencies of six major U.S. trading partners, earlier added 0.2% to 83.889.
The rise came amid the prospects of improving U.S. fundamentals which could spur the Federal Reserve to taper off its monthly bond purchases of $85 billion.
As a result, after the close of markets in the U.S. and U.K. yesterday for public holidays, the Dollar Index, which Intercontinental Exchange Inc. uses to track the Dollar against the currencies of six major U.S. trading partners, earlier added 0.2% to 83.889.
The rise came amid the prospects of improving U.S. fundamentals which could spur the Federal Reserve to taper off its monthly bond purchases of $85 billion.
With many economists of the view that the pace of Fed purchases is unsustainable, tapering is expected to begin in the fourth quarter of 2013.
Earlier the Dollar rose by 0.9 percent to 101.86 Yen and by 0.2% to $1.2904 per Euro. The Yen dropped by 0.7& to 131.42 per Euro.
The Yen had snapped a three-day gain against the Euro, after the Bank of Japan (BOJ) had estimated that deposits it holds in custody for financial companies are set to rise to a record 72.4 trillion Yen ($711 billion) today.
Japan's current-account balance is a part of the monetary base and the BOJ plans to double it within two years. Its aim is to purchase more than 7 trillion Yen of government bonds each month in order to end 15 years of deflation.
It's clear to me that Japan's monetary easing will continue to underpin the Yen's decline, and many analysts expect further Yen weakness as economic indicators improve in the U.S. and other countries.
Earlier the Dollar rose by 0.9 percent to 101.86 Yen and by 0.2% to $1.2904 per Euro. The Yen dropped by 0.7& to 131.42 per Euro.
The Yen had snapped a three-day gain against the Euro, after the Bank of Japan (BOJ) had estimated that deposits it holds in custody for financial companies are set to rise to a record 72.4 trillion Yen ($711 billion) today.
Japan's current-account balance is a part of the monetary base and the BOJ plans to double it within two years. Its aim is to purchase more than 7 trillion Yen of government bonds each month in order to end 15 years of deflation.
It's clear to me that Japan's monetary easing will continue to underpin the Yen's decline, and many analysts expect further Yen weakness as economic indicators improve in the U.S. and other countries.
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