Dollar Higher vs Yen as Safe Haven Demand Wanes
The Japanese Yen fell out of favor against the US Dollar as risk appetite improved during the Asian trading session. Analysts say that because there was no new impetus to heighten the already tense trade relationship between the US and its key trading partners, there was little demand for the safe haven currency. During periods of financial or geopolitical stress, the Japanese Yen generally benefits from investor unease on the assumption that funds would be repatriated into Japan as the biggest creditor nation in the world.
As reported at 10:33 am (JST) in Tokyo, the USD/JPY was trading higher at 110.583 Yen, a gain of 0.13%; the pair has ranged from a trough of 110.375 Yen to a peak of 110.601. The Swiss Franc was also softer against the greenback, with the USD/CHF trading at 0.99738 Swiss Francs, moving away from the session peak of 0.99806 Swiss Francs while the low was recorded at 0.99691 Swiss Francs.
Trump Trade Threat Softened
The US Dollar was broadly higher thanks to a softer “tone” from the US President who said that a new and improved security review of Chinese acquisitions of American technologies would be used rather than the imposition of specific restrictions on investments. On Thursday, the Dollar had come under some brief pressure after the release of 1st quarter GDP numbers which came in at 2% annualized, below the 2.2% which had been expected by economists polled.