US Dollar Remains Strong, But Continues to Weaken Against the Japanese Yen (USDJPY)

The USD remains strong in Asia, except against the JPY, with USD gains led by the EUR sell-off on the latest developments in the European banking crisis over the weekend. The EUR gapped lower at the Asian open, from 1.3800 to 1.3700, and extended losses to 1.3604 on the negative news. However, the USD has weakened against JPY with USDJPY falling from 105.15 morning highs to 102.85 on broad-based JPY cross selling. Heightened risk aversion, on falling Asian stocks, the European and Icelandic banking crisis and liquidity pressures in Asia, all fueled the JPY cross sell-off. JPY crosses have fallen in some instances, to multi-year lows with GBP-JPY dropping to the lowest levels since November 2003.