The US Dollar edged lower against the Japanese Yen after an unexpected decline in Japan’s stock market dampened risk sentiment. The Nikkei had closed down 0.2% after a 2% rise earlier in the trading day which saw a new multi-year peak. That unexpected volatility helped to drive demand for the Yen, viewed as a safe haven by FX traders. Market uncertainty will often drive investors to the Yen, despite its low yield, as a way for investors to reduce risk exposure.
As reported at 11:29 am (GMT) in London, the USD/JPY was trading at 113.349 Yen, down 0.45%; the pair had earlier hit a trough of 113.240 Yen while the session peak is currently at 114.069 Yen. The EUR/JPY is also lower at 131.8631 Yen, a loss of 0.1286%; the pair has ranged from a low of 131.5000 Yen to a peak of 132.2640 Yen in today’s trade.
Kiwi Dollar Higher after RBNZ
In New Zealand, the Kiwi Dollar hit a 2-week peak after an unexpectedly hawkish inflation outlook from the RBNZ. According to the statement from the Reserve Bank of New Zealand, the new government’s stimulus plan coupled with a weaker Kiwi Dollar could lead to an acceleration in inflation; they projected interest rates would rise in Q2 of 2019, one quarter sooner than previous forecasts. The central bank left its benchmark rate unchanged at 1.75%. The NZD/USD was trading at $0.6980, a gain of 0.1605% and close to a new session high while the daily low is at $0.69430.