2008.12.2123:41:00UTC+00Dollar Surges To 6-day High Against Yen

Monday morning in Asia, the US dollar jumped to a 6-day high against the Japanese yen. On other hand, the dollar that weakened against its European counterparts in early Asian trading reversed direction around 7:30 pm ET.

The dollar, which closed last week's trading at 89.15 against the yen rose to a 6-day high of 90.24 during early Asian deals on Monday. If the dollar-yen pair advances further, 91.4 is seen as the next target level.

Japan posted its second consecutive monthly merchandise trade deficit in November, led by the biggest ever decline in November exports. Japan's Ministry of Finance reported today that the nation's trade deficit for November totaled 223.42 billion yen. The figure compared with a deficit of 67.69 billion yen in October and a surplus of 85.68 billion yen in September.

Against the currencies of Europe and Switzerland, the dollar slipped to 1.4048 and 1.0964 by about 7:30 pm ET Sunday. Thereafter, the dollar gained ground and it is currently worth 1.1040 against the franc and 1.3961 against the euro, compared to Friday's close of 1.1024 and 1.3929, respectively.

The dollar strengthened against the pound after hitting a low of 1.4993 at 7:25 pm ET Sunday. The pound-dollar pair that closed last week's trading at 1.4938 is presently quoted at 1.4904.

Traders are now likely to focus on the European session, in which the German import price index, GFK consumer confidence data, French PPI and the Italian trade balance reports have been slated for release.

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