Follow Us:
Friday, July 01, 2022

Dollar sets fresh 18-month low vs yen, Aussie awaits RBA

The US Treasury listing was seen as making it harder for Japan to intervene in the currency market to stem the yen's gains.

By: Reuters | Singapore |
May 3, 2016 9:04:26 am
The surge in the Japanese yen and a bleak outcome from a monthly factory managers' survey did little to lighten the gloom. (AP Photo/Shizuo Kambayashi) The surge in the Japanese yen and a bleak outcome from a monthly factory managers’ survey did little to lighten the gloom. (AP Photo/Shizuo Kambayashi)

The dollar set a fresh 18-month low versus the yen on Tuesday, as the yen rose in a holiday-thinned market, while the Australian dollar held firm ahead of an interest rate decision from Australia’s central bank.

The dollar last traded at 106.21 yen, down 0.2 percent on the day. The greenback fell to as low as 106.05 yen at one point, its lowest level since October 2014.

“It’s a continuation, it’s a weak dollar theme and yen seems to be the leader,” said Jesper Bargmann, head of trading for Nordea Bank in Singapore.

The yen’s rise occurred in thin trading conditions with Japanese markets closed from Tuesday to Thursday for public holidays.

Subscriber Only Stories
Skin Allergies In Children – What parents need to know?Premium
What makes KuCoin P2P Trading Platform a Good Choice To Buy Crypto?Premium
Airtel Demonstrates Immersive Video Entertainment On 5G; Recreates Kapil ...Premium
Is It A Good Idea To Keep One Account For All Your Financial Transactions?Premium

[related-post]

The yen added to its recent gains, having jumped about 5 percent against the dollar last week as the Bank of Japan held off from expanding its monetary stimulus – the yen’s biggest weekly gain since 2008.

The yen also rose this week after the US Treasury put Japan on a new currency monitoring list on Friday along with four other countries that have large trade surpluses with the United States.

The US Treasury listing was seen as making it harder for Japan to intervene in the currency market to stem the yen’s gains.

One factor that may help to temper the dollar’s decline against the yen in the short-term is market positioning, with traders already having built up bearish bets against the dollar, said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.

Okagawa said any respite for the dollar was likely to be temporary, however, adding that the greenback still seemed to be stuck in a downtrend versus the yen.

The dollar inched down against a basket of six major currencies, slipping to a low of 92.461 at one point on Tuesday, its lowest level since January 2015.

The greenback has been on the defensive because the U.S. Federal Reserve is seen in no hurry to raise interest rates. The dollar index has fallen about 6.2 percent so far this year.

The euro hit its strongest level since last August at $1.1543. The euro last stood near $1.1539, steady on the day.

The Australian dollar rose 0.4 percent to $0.7697, holding firm ahead of an interest rate decision from the Reserve Bank of Australia later on Tuesday.

While a majority of economists polled by Reuters expect no rate move, a growing number are forecasting a cut following some soft inflation numbers.

Hot Offer Putin claims victory in Mariupol, leaving Ukrainian defenders holed up Subscribe Now

📣 Join our Telegram channel ( The Indian Express ) for the latest news and updates

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard

Featured Stories

Latest Comment
Post Comment
Read Comments
Advertisement
X