The dollar struggles on facing its peers today, falling before the Federal Reserve’s (Feds) policy minute talk. However, it manages to gain on the yen when strong investor risk desires to rim the demand of the Japanese money. That makes the U.S. dollar up by 0.2 percent at about 110.83 yen.
As the safe-haven currency in times of risk aversion, the Japanese currency gives up the ground. That brings Tokyo shares up to a fresh two-month high.
Koji Fukaya, president of FPG Securities says, “The yen is on the defensive with strong equities prompting a risk on mood.”
Dollar inclines in the yen
The dollar receives its initial gain last Tuesday. Upon Bank of Japan Governor Haruhiko states that the central bank is ready to incline its stimulus if sharp yen rise to hurt the economy.
Kuroda says, “The BOJ does not really have a lot of options left even if it wanted to act. But the global trend -starting with the United States, Europe, and Australia- is moving toward central bank modishness and the BOJ’s stance is in line with the trend.”
Against the group of six major currencies, the dollar index touches lower at about 96.451 upon dropping 0.4 percent overnight. Yukio Ishuzuki, senior currency strategist at Daiwa Securities says, “The dollar is weighed with Treasury yields on a downturn. Attempts by participants to price in potentially dovish FOMC (Federal Open Market Committee) meeting minutes are also keeping the dollar on the defensive.”
On Tuesday, benchmark 10-year U.S. Treasury yields declines at an 11-day low. That was ahead of the Fed meeting minute’s deadline today.
The Fed’s January minute meeting is watched closely upon a dovish statement on the review. The dollar truly struggles on most of its peers, together with yen; it becomes a safe-haven.
Just last week, the dollar gains its two-month high. However, demand for the greenback decline on optimism that the fresh round of meeting among China and the U.S. could help solve the trade conflict.
Other Currencies
On Tuesday, the euro also inclines 0.1 percent to $1.1353, standing near two-week highs of $1.1358. Meanwhile, the pound also gains overnight rally. It gains a two-week high of $1.3077.
The Sterling also gains more than 1 percent last Tuesday hoping that British Prime Minister Theresa May makes progress to look for changes in her Brexit deal with the European Union.
COMMENTS