Though lower now, the Japanese Yen had been able to retain recent gains, having been propped up by FX trader’s risk adverse sentiment after another decline in the price of crude oil. A fall in the global stock markets had also put some fear in FX traders that largely drove safe haven demand. At the same time, the fall in commodities put the Aussie and Canadian Dollar under some sell pressure. In the past week, the Yen has also been supported by the lessening of concerns over a possible intervention by the Bank of Japan. Last week at the G7, the United States issued a broad caution regarding currency manipulation.
As reported at 11:00 am (BST) in London, the USD/JPY was trading at 109.6600 Yen, a gain of 0.39%. The EUR/JPY is just off its opening price at 122.6060 Yen, a gain of 0.03%. The AUD/USD is trading lower at $0.7161, a loss of 0.85% while the USD/CAD is trading at C$1.3158, edging up 0.07%.
Dollar Lifted by Fresh Rate Hike Prospect
The US Dollar is also finding some support as the Federal Reserve whets the interest rate frenzy again with expectations growing that another rate hike could occur next month, or if not, certainly within this year. In fact, the greenback had touched on a 3-week peak after the Fed’s meeting minutes were released. The US Dollar Index is up 0.20% at 95.417 .DXY.