Dollar depreciated by yen on the back of rising political tensions in the U.S.

Dollar depreciated

The dollar subsequently fell versus the Japanese yen last Thursday. Investors secure previous gains on the back of the unexpected dismissal of FBI director James Comey by U.S. President Donald Trump.

However, the future of the U.S. currency is bright after the figures from the United Sates on Thursday seemed positive. This stabilized expectations of Federal Reserve’s lifting interest rates for the month of June. The report was followed by data’s showing that interest rate futures that costs as much as 80 percent is one of the factors that made Fed tighten policy.

TD Securities’ head of FX strategy Mark McCormick says the dollar/yen pair movement might be position-squaring and had notched levels such as breaking yen at 113.50 as the market currently needs momentum from new drivers.

McCormick also said that the idea of the greenback trading poorly to rate differentials and the fact the rates in the United States are beginning to grow probably by next month, has recommended a much better future for the currency.

On Thursday’s opening bell, the U.S. dollar was 0.46 percent lower versus the Japanese yen to 113.73 yen. In addition to the dollar’s poor performance on the day, it also dropped about 0.31 percent against 1.0056 Swiss francs. Meanwhile the U.S. dollar index traded lower by 0.09 percent at 99.58 against its opposing currencies.

The dismissal of Federal Bureau of Investigation’s director James Comey highly impacted the currency market. The past FBI chief told policy makers that he desires additional resources for the investigation of his agency into a likely clash amongst Russia and campaign of Donald Trump to influence last year’s presidential election.

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