Exercising caution in a trading environment threatened by a struggling China, the US Dollar came up off of 7-month trough versus the Japanese Yen. The Yen has largely been the recipient of investors’ collective panic, with the safe haven currency earlier being driven to a multi-year high, no doubt to the chagrin of the Japanese government. The Dollar was also lifted by the uptick in yields of U.S. Treasury instruments, which initially fell on Monday but recovered in today’s session.
As reported at 11:26 am (BDT) in London, in volatile trading, the USD/JPY pair was trading at 119.9195 Yen, a gain of 1.05%. Today’s trading band for the pair has ranged from 118.2550 Yen to 120.1075 Yen. The EUR/JPY was trading at 137.90, up 0.34%. The EUR/USD was down at $1.1492, a loss of 0.78%; the pair ranged from $1.1486 to $1.1605 in today’s trade.
Dollar Comes Under Scrutiny
Though antipodean currencies were hit hard by the recent sell off in Asian equities, the U.S. Dollar is still being closely scrutinized. That is because there is now a growing consensus that the Federal Reserve will maintain the status quo given the global situation. That means interest rates are likely to stay at or near their current historically low levels.
