FXstreet.com (Barcelona) - The Dollar has depreciated continuously against the Yen after having set what seems lime a medium-term high at 101.45 on Apr 6, reaching on Monday a fresh 5-week low at 94.55, risk aversion after swine flu is one of the reasons of this trend, which may not be long-lasting, according to UBS Bank.
Dollar weakness has increased on the last two days, a trend that, according to the UBS Bank, responds to unwinding of short Yen positions and risk aversion from swine flu: The Yen strengthened against the US dollar for four straight trading sessions, extending its gain since early April. The appreciation is mainly driven by unwinding of short Yen positions and on Monday risk aversion from outbreak of swine flu in Mexico. We however expect Yen weakness to resume soon.
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