Dollar Rises for Second Day as Yen’s Slump Deepens
A Bloomberg gauge of the dollar rose for a second day as the US government shutdown continued. The yen’s post-LDP-vote slump deepened amid fresh leveraged selling as the carry trade makes a comeback.
The Bloomberg Dollar Spot Index rises 0.4% to highest since Sept. 26, above 1,208 mark, extending October’s gains.
With little economic data given the US government shutdown, focus turned to Federal Reserve commentary that included remarks from Miran, Kashkari, Bostic and Bowman on Tuesday.
USD/JPY rises 1.1% to 151.93 day’s high, strongest since Feb. 19.
EUR/JPY climbs 0.6% to a fresh all-time high at 177.13.
EUR/USD down 0.4% to 1.1659; trades near 50-DMA seen at 1.1683.
One-week risk reversals flip bearish amid French risks.
EUR/GBP erases earlier rise, trades little changed at 0.86810.
Source: Bloomberg