Dollar Resumes Losses, Yen Climbs on Verbal Warning
The dollar fell versus all Group-of-10 peers while the yen recovered from the weakest level in a month after Japan’s chief currency official warned against currency volatility.
The Bloomberg Dollar Spot Index drops 0.2% following three days of gains; higher-beta FX leads gains as stocks move higher and riskier assets are better bid.
The Treasury 10-year yield inches two basis points higher to 4.16%.
AUD/USD rallies by 0.5% to 0.6642, NZD/USD +0.5% at 0.5785.
USD/JPY falls as much as 0.3% to 157.12 after rising to 157.78 Friday, the highest since Nov. 20
Japan’s currency rallied after Japan’s vice finance minister for international affairs Atsushi Mimura said the authorities will take appropriate measures against excessive foreign-exchange market moves.
His comments came after the yen slid 1.4% on Friday when the Bank of Japan raised interest rates in a widely expected move but gave no clear guidance on the timing of future tightening.
GBP/USD gains 0.4% to 1.3434; UK GDP expanded 0.1% q/q in 3Q, matching the median economist estimate in a Bloomberg survey.
Hedging costs in the major currencies remain in free-fall mode, and the pound leads the way as volatility hits record lows versus major peers.
EUR/USD gains 0.2% to 1.1738 after falling in the past four sessions; spot and options volumes show holidays mode is already driving markets.
Source : Bloomberg.com
