💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

FOREX-Dollar at 5-mth lows vs yen on rising geopolitical tensions

Published 12/04/2017, 10:26 am
Updated 12/04/2017, 10:30 am
FOREX-Dollar at 5-mth lows vs yen on rising geopolitical tensions
EUR/USD
-
USD/JPY
-

* Fresh uncertainty towards French elections adds to risk aversion

* Yen stands at five-month highs vs dollar, euro, sterling

By Shinichi Saoshiro

TOKYO, April 12 (Reuters) - The dollar languished at a five-month low versus the yen early on Wednesday, as simmering geopolitical tensions checked risk appetite and put the safe-haven Japanese currency in favour.

The dollar was at 109.745 yen JPY= after touching 109.535 earlier in the session, its lowest since Nov. 17.

The U.S. currency had slid more than 1 percent the previous day from highs of 110.920, dragged down by a sharp drop in U.S. Treasury yields.

"There was a lot of bids and option barriers lined up around 110 yen, so a breach of this level shows how widespread the latest dollar selling was," said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo.

"The yen's gains against the euro also bears watching, with uncertainty towards the French presidential elections clearly the driving factor."

The euro, which sank more than 1 percent overnight, extended losses and touched a five-month low of 116.160 yen EURJPY= .

Investors' flight-to-safety underpinned traditional safe-havens like the yen and Treasuries amid fresh concerns about the French presidential election and possible U.S. military action against Syria and North Korea.

On Tuesday, North Korean state media warned of a nuclear attack on the United States at any sign of American aggression, as a U.S. Navy strike group steamed toward the western Pacific - a force U.S. President Donald Trump described as an "armada". in a new twist to the French elections, a far-left veteran who had been written off as a long shot has now surged into the top four, pushing some pollsters to calculate the most extreme runoff scenarios. the euro sagged against the yen, it fared better versus the struggling dollar. The common currency was up 0.1 percent at $1.0610 EUR= , adding to modest overnight gains.

It was a similar story for the pound, which retreated to a near five-month low of 136.85 yen GBPJPY= but edged up against the dollar. Sterling was steady at $1.2490 GBP=D4 after gaining about 0.6 percent overnight.

The Australian dollar, sensitive to shifts in broader risk appetite, was up slightly at $0.7503 AUD=D4 after dropping to a near three-month trough of $0.7475 the previous day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.