Dollar rallies as yen hits 7-year low

26-May (Financial Times) — The dollar is rallying as concerns about a possible Greek default put pressure on the euro and the yen tumbles to seven-year lows, while in equities Wall Street and Europe are soft despite greater China’s surge to multiyear highs.

…The dollar is up 1.3 per cent to Y123.14, leaving the yen on course for its weakest close since the summer of 2007 as traders contrast the divergent monetary policies of the Fed and Bank of Japan, where the latter is continuing a mammoth quantitative easing programme.

The yen’s move is exacerbated by its burst out of a multimonth range, releasing a surge of momentum, amplified by protective “stops” being filled.

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