RTTNews - During early Asian deals on Monday, the dollar and the yen plummeted against their key counterparts on hopes for strong corporate earnings encouraged investors to buy riskier and higher-yielding assets.

Strong earnings and positive economic reports such as a surprise rise in U.S. housing starts in June helped U.S. stocks close higher on Friday.

Last week's rally was also driven by much better-than-expected earnings from some major companies, including Intel Corp, International Business Machines Corp and Goldman Sachs Group.

For the past week, the Dow Jones industrial average gained 7.3 percent, while the S&P 500 climbed 7 percent and the Nasdaq Composite Index jumped 7.4 percent.

Tracking Wall Street's surge on Friday, the stock markets across the Asia are trading higher today on hopes of an economic revival.

Australia's S&P/ASX Index gained 1.3 percent. New Zealand's NZX 50 Index rose 0.22% percent, while South Korea's Kospi Index climbed 2.5 percent.

The Japanese market is closed today for a national holiday.

Oil rose above $64 a barrel in Asian deals today, extending Friday's 2.5 percent gain, bolstered by a rally in stocks and fall in the dollar on hopes of a global economic recovery.

U.S. crude oil for August delivery rose 54 cents to $64.10 a barrel at 11:00 pm ET, after settling up $1.54 at $63.56 on Friday. London Brent crude for September rose 55 cents to $65.93.

The dollar fell to a 19-day low of 1.4182 against the euro during early Asian deals on Monday. If the dollar weakens further, it may likely target the 1.420 level. At last week's close, the euro-dollar pair was quoted at 1.4101.

The dollar slipped against the euro after reaching a 15-day high of 1.3834 on July 08. Encouraging economic reports from Europe helped euro to resume its uptrend. Thus far, the dollar has lost more than 2% from a 15-day high.

In early Asian trading on Monday, the dollar declined to a 4-day low of 1.0721 against the Swiss franc. This may be compared to Friday's close of 1.0779. On the downside, 1.0706 is seen as the next target level for the dollar.

After hitting a 1-month high of 1.1024 against the franc on June 24, the dollar dropped 3% and touched a 3-week low of 1.0706 on July 16. Although the franc slipped last Thursday amid a report that showed Switzerland's economic sentiment indicator diminished in July, it bounced back after falling to a 2-day low of 1.0819 on Friday.

The dollar that closed last week's trading at 1.6336 against the pound, plunged to 1.6416 in early Asian deals on Monday. The near term support for the dollar is seen around the 1.646 level.

The dollar has depreciated 3% against the pound since it reached a 1-month high of 1.5986 on July 08. The pound was supported by economic reports, showing an improvement in U.K. consumer confidence and a decline in nation's annual inflation below the central bank's 2% target in June.

The yen tumbled to a 12-day low of 94.70 against the dollar in early Asian trading on Monday. If the yen slides further, it may test support around the 96.9 level. The dollar-yen pair was worth 94.30 at last week's close.

The yen has been showing weakness against the dollar after it surged up a 5-month high of 91.76 on July 13. Since then, the yen lost 3% against the dollar.

Last week, the Bank of Japan decided to keep its interest rates unchanged at 0.10%. Also, the central bank raised its economic assessment for the third month, citing an increase in public investment and pick-ups in exports and production.

During early Asian deals on Monday, the yen plummeted to a 17-day low of 134.21 against the euro. The next downside target level for the yen is seen at 136.9.

Thus far, the yen slipped 5% against the euro from a 7-week high of 127.04 hit on July 08.

Against the currencies of U.K. and Switzerland, the yen fell to a 13-day low of 155.43 and 88.24 in early Asian deals on Monday. If the yen weakens further, it may likely target 89.8 against the franc and 159.4 against the pound. The pound-yen and the franc-yen pairs were worth 154.03 and 87.52, respectively at Friday's close.

Looking ahead, the German PPI and the U.K. M4 money supply reports-both for the month of June are expected in the upcoming European session.

Across the Atlantic, the U.S. leading indicators report for June has been slated for release in the North American session.

Earnings are set to take center stage again this week as more U.S. companies line up to report their quarterly results.

Companies reporting this week include American Express Co, Apple Inc, Boeing Co, Caterpillar Inc, Coca-Cola Co, DuPont Co, McDonald's Corp and Microsoft Corp.

The focus of this week also shifts to Federal Reserve Chairman Ben Bernanke's semiannual monetary policy testimony to Congress on Tuesday and Wednesday. Investors will be seeking clues on whether the Fed will begin unwinding some of the huge stimulus measures it undertook during the U.S. financial crisis.

If any signal comes from the Fed Chairman, investors will perceive it as evidence that the U.S. economy could soon show positive growth, bolstering risk appetite.

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