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

FOREX-Dollar wobbles vs yen as risk aversion permeates, RBA awaited

Published 04/04/2017, 10:07 am
Updated 04/04/2017, 10:10 am
© Reuters.  FOREX-Dollar wobbles vs yen as risk aversion permeates, RBA awaited
EUR/USD
-
USD/JPY
-
AUD/USD
-
BARC
-
US10YT=X
-

* Dollar/yen hits 1-week low as US yields hit 1-month lows

* Euro's advance vs dollar tempered by lower bund yields

* Aussie awaits RBA decision for immediate cues

By Shinichi Saoshiro

TOKYO, April 4 (Reuters) - The dollar wobbled against the yen on Tuesday, buckling against its safe-haven Japanese peer as a risk-averse mood spread through the broader markets.

Investor appetite for risk has been dulled this week by a number of factors, such as caution ahead of the upcoming meeting between U.S. President Donald trump and Chinese President Xi Jinping and a suspected suicide bombing in St. Petersburg, Russia.

"The dollar is feeling pressure against the yen from an interest rate spread point of view, with Treasury yields having fallen to one-month lows as Wall Street despite decent data," said Shin Kadota, senior strategist at Barclays (LON:BARC) in Tokyo.

The dollar extended overnight losses and was down 0.15 percent at 110.685 yen JPY= , its lowest in a week.

The euro was steady at $1.0666 EUR= after rising only about 0.2 percent overnight against the dollar, its advance tempered by a sharp decline in German bund yields driven by flight-to-safety following the bombings in St. Petersburg.

Immediate focus in Asia was on the Reserve Bank of Australia's policy decision due later in the day.

The central bank is widely expected to keep its cash rate at a record low of 1.5 percent and focus is on its view of the domestic economy and its implications for the future path of rates.

The Australian dollar was flat at $0.7605 AUD=D4 , having declined steadily over the past two weeks from a four-month high of $0.7750.

The pound was little changed at $1.2489 GBP=D4 after dropping 0.7 percent overnight on data showing British manufacturing lost momentum last month, the latest sign the economy may be running out of steam.

The 10-year Treasury note yield US10YT=RR hovered near a one-month low of 2.321 percent plumbed overnight.

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.