Dollar Sought as Safe Haven After Equities Tumble

The US Dollar was broadly higher on Tuesday after the fall in global equities had investors looking to lower their risk exposure and seek out the greenback’s relative safety. Only against the Japanese Yen, a true safe haven currency, did the greenback falter, dropping to a low of 108.46 Yen at one point. One currency strategist in Singapore sees support for the USD/JPY at about 107 to 108 Yen, though he cautions that another decline on Wall Street could send the pair down to the 104 Yen level. The DJIA fell 1600 points on Monday, essentially wiping out all of the 2018 gains with a similar story for the S&P which lost 113 points. The Nasdaq dropped 273 points on Monday.

As reported at 10:43 am (GMT) in London, the GBP/USD was trading at $1.3959, down 0.09%; the pair earlier hit a low of $1.3936 while the session peak is at $1.400. The EUR/USD is up at $1.2401, a gain of 0.16%; unexpectedly upbeat news that German factory orders increased in December likely gave the Euro a solid boost. The USD/JPY is trading at down 0.04% and 109.08 Yen; off the session high of 109.319 Yen.

RBA Maintains Policy

In Australia, the Reserve Bank of Australia left its benchmark lending rate at the current 1.5%. The report issued in tandem with the policy decision offered an upbeat outlook for the Australian economy. The AUD/USD is currently trading at $0.7872, down 0.1889%; the pair has ranged from a low of $0.78320 to a peak of $0.78920 in today’s trading session.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.