US dollar to yen touches multimonth bottom

Posted 13 February, 2018

On Tuesday, February 13, the US dollar keeps drifting downwards touching a 5-month bottom in the pair with the Japanese yen on stabilization of the global stock markets. However, investors are still careful given upcoming US inflation report this week.

Stock markets in Asia have posted an upturn today following the US ones over the last session. The market has been highly volatile last weeks given possible earlier interest rate increase on higher inflation.

The yen traditionally enjoys good demand when the market is unstable considering the support from the high trade balance surplus in Japan, which involves better stability against currencies of the countries facing a deficit.

However, investors still stick to the careful policy in light of coming release of US inflation report. As a result, safe haven demand for the yen has slackened. The new selloffs can happen if the data exceeds expectations.

The US Dollar index dropped to some 86.70.

The euro to US dollar rate increased to 1.2324, after posting the bottom at 1.2204 a week ago. The European currency remains backed by the anticipated delayed launch of stimulus measures by the European Central Bank amid a robust economic upturn in the euro-area.

The sterling has also rebounded vs the greenback reaching some 1.3859 today. The sterling is still in the demand given expectations about a possible upward revision of the interested rate by the BoE soon though the Brexit process remains vague.

Previous story

13 February, 2018 13:46

← UK inflation report pushes sterling up to daily peak

The sterling rate has boomed vs the US dollar on Monday driven by the UK inflation report. According to the released data, the country’s inflation rate remained close to the 6-year top in January, which only fueled forecasts about an early upward revision of the interest rate by the Bank of England. The sterling hiked from 1.3883 to some 1.3900 just after the report announcement.

UK inflation report pushes sterling up to daily peak

Next story

12 February, 2018 14:58

US dollar continues downward movement on Monday →

The US dollar keeps sliding vs the majors on February 12. Traders have taken a break taking into account US dollar hikes observed lately and stock market recovery. As it was reported, the greenback strengthened given Congress positive determination on the 2-year federal budget issue, which drew the line under the government shutdown.

US dollar continues downward movement on Monday
Write a comment
 
Prove you’re not a bot + 12 = 24