Dollar Drops as Yen Rises to Its Highest in a Week
The dollar came under pressure versus all G-10 peers while the yen rose to its highest in a week.
USD/JPY drops 0.6% to 150.90, lowest since Oct. 7; Japanese opposition parties met to agree on their own candidate to become the next prime minister, reducing the prospect of dovish ruling party leader Sanae Takaichi securing the role.
The yen pares its intraday gain as benchmark 10-year bond yields fell following a solid auction of that tenor.
Flows are mixed during the London session in the pair, with hedge funds split between hedging spot longs and buying outright bullish options exposure, Europe-based traders say.
The dollar weakens for a second day after Federal Reserve Chair Jerome Powell on Tuesday signaled the central bank is on track to deliver another quarter-point interest-rate cut this month, even as a government shutdown significantly reduces its read on the economy
The Bloomberg Dollar Spot Index falls 0.2% while Treasury 10-year yields slip 2 basis points to 4.01%
EUR/USD up as much as 0.3% to 1.1645; large expiries seen at 1.1600 in €2.4b on Wednesday and €2.04b on Thursday: DTCC
EUR/GBP little changed at 0.8715
AUD/USD rises 0.6% to 0.6523, reversing Tuesday’s loss. The pair was bought after Reserve Bank of Australia assistant governor Sarah Hunter said underlying inflation in the three months through September is likely to be stronger than the central bank had anticipated
Source : Bloomberg.com
