Dollar stuck near six-week low versus yen

Dollar stuck

The dollar dipped near a six-week low against yen on Wednesday, the dollar traded at 109.490 yen, not far from 109.225, the currency’s lowest since April 21 plumed overnight. The dollar has lost about 0.9% against the safe-haven yen this week; the dollar is also pressured by a sharp drop in the United States Treasury yields to seven-month lows as investors wanted safety of government debt.

In addition, the dollar was seen coming under more pressure as previously strong impartialities also began falling. Wall Street shares pulled away from recent record highs and fell overnight as demand for risky assets decreased ahead of Thursday’s events.  In addition, Tokyo’s IG Securities FX strategist: Junichi Ishikawa said that the dollar has felt the tug of lower U.S. yields, however, resilient stocks have helped neutralized some of the turmoil.  

The dollar index against a basket of major currencies was an inch lower at 96.624 following a slip to 96.515, its lowest since November 9. On the other hand, the euro climbed about 0.2% overnight at $1.1267. The common currency was still shy of the seven-month high of $1.1285 touched on Friday, as expectations prevailed ahead of the European Central Bank’s policy meeting on Thursday.

In accordance to the events being held on Thursday, the ECB meeting could be at least disruptive as participants have already had time to restrain their previously aggressive expectations, as what Sumitomo Mitsui Trust’s senior market economist: Ayako Sera have said.

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