USD/JPY Steadies Below 110.00

USD/JPY rose to a one-week high of 110.22 on Thursday but is having trouble maintaining bullish momentum, the pair was little changed on a daily basis at 109.72.

The sharp decline in the major European stock indices drove the demand for the Japanese yen on Thursday due to risk aversion and the major indices on Wall Street also started in negative territory losing about 0.5% on the day. As for the US dollar index, it continued to rise as the Fed minutes failed to change investors’ expectations of starting to scale back quantitative easing before the end of the year. The US Dollar Index is at its lowest level since November at 93.50, up 0.37%.