United States dollar collapses against the safe-haven yen

Dollar index

Friday, troubled by reintroduced investor concerns over United States President: Donald Trump’s administration’s ability to push forward its economic policy agenda, the United States dollar fell against the safe-haven yen. The greenback fell 0.2% to 109.41 yen JPY=, adding to its 0.6% fall on the previous day. In addition, the U.S. dollar has rebounded from a peak of 110.95 yen in which the currency has achieved earlier in the week and is considered as the greenback’s strongest level in more than a week.

In relevance to this, the news of a deadly attack in Barcelona and the hearsay over the possible resignation of the White House Economic Adviser: Gary Cohn worries the markets, which encouraged demand for the safe-haven bonds. However, Gary Cohn is remaining in his post, according to an official of the White House on Thursday.

In addition, Tareck Horchani, head of Asia-Pacific sales trading for Saxo Markets in Singapore, said that it’s a pure risk-off trade, as Asian markets are catching up to the moves seen in the United States markers on Thursday. Horchani also added that the risk-averse sentiment could prove short-lived, given that according to the news that Gary Cohn will stay his post.

Meanwhile the euro stood firm on Friday and traded at $1.1724 EUR=, however, the euro was down by 0.8% for the week. In addition, the currency had collapsed to a three-week low of $1.1662 on the previous day, minutes after ECB’s July 20 policy meeting revealed policymaker were anxious that the repricing of the currency could exceed.

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