Thin Dollar Rebound On Yen

The dollar rebounded against the yen but was still stuck in the lowest level in two months against the yen in Asian trade today.

The dollar rose slightly against the yen after Japanese data came out disappointing. Japan's industrial output fell 1% in November, more than forecast 0.6%, indicating sluggish export demand. Other data showed retail sales also fell 1% in the same month, exceeding the 0.6% forecast. Both data added to speculation the BOJ someday have to add stimulus.

Yet the dollar remains near its lowest level in two months on the Japanese currency. Basically, the dollar is still in a correction phase due to profit taking after the sharp gains due to rising interest rates the Fed.

Throughout December, the dollar index has weakened 2%, but still up 8% so far this year, driven by the prospect of interest rate hikes by the Fed.

Without supported by the prospect of continued rise, the dollar trend is expected difficulty maintaining its gains. According to projections, the Fed is expected to raise interest rates as much as 3-4 times the next year, with further rises projected in March.

Ahead of the holiday season, where most of the world's financial markets were closed, the transaction exchange rate diminished make currency movements terbatas.Beberapa market, including in Australia and most of Europe, was closed today after the Christmas break. Plus there is no important events scheduled for this day. Entering the end of the year, currency movements or limited possibilities ranging.