Rising stocks cause yen to sink as US dollar remains steady
TOKYO (JAPAN) – The US dollar on Monday remained steady against most currencies. This came as investors awaited data expected to show the US services sector stopped shrinking. This would lift hopes for an economic recovery.
Economic data from Germany and the eurozone predict a sharp rebound in corporate activity and retail sales. In this backdrop, the euro moved in a narrow range.
Gains in Asian share prices spurred some risk-on trades and this caused the yen to fall against most major currencies.
The spike in new infections in the US made some investors desist from taking big positions in the currency market. However, most investors believe that major economies will continue to recover.
“When it comes to dollar/yen, recovery expectations are supporting the dollar, but worries about the virus are capping the upside,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“The markets are focused on other currency pairs, like the Australian dollar, which is still in a clear uptrend against the US dollar due to the rise in copper prices.”
On Monday, the US dollar edged up to 107.68 yen in the wake of a 0.3% gain last week.
The euro witnessed a rise of 0.36% to $1.1287. It edged up to 90.35 pencea against the British pound.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field