TOKYO (Reuters) – The euro was on the defensive on Wednesday following weaker-than-expected German sentiment data, while worries over a possible U.S. government shutdown underpinned the yen against the dollar.
Traders, wrong-footed by last week’s shock decision by the U.S. Federal Reserve to keep its bond-buying stimulus intact, also remain cautious and on data-watch mode as they consider for how long the U.S. central bank could hold off from tapering.
SYDNEY/TOKYO (Reuters) – The euro nursed modest losses on Tuesday after the European Central Bank said it stood ready to do more to keep market rates down, while dovish comments from an influential Federal Reserve official kept the dollar on a leash.
Traders were also wary about U.S. fiscal policy amid a political showdown in Washington that could see the government shut down, or at the very extreme, default on its debt.
TOKYO (Reuters) – Asian shares paused on Friday as investors sat back to ponder the U.S. Federal Reserve’s policy outlook, a day after the world’s most powerful central bank triggered a global rally in riskier asset markets with an unexpected decision to maintain its stimulus program.
The dollar drifted off a seven-month low against a basket of major currencies and U.S. Treasury yields rose after a string of upbeat U.S. data provided a reminder to markets that the Fed is not far off from the day when it starts to cut stimulus.
TOKYO (Reuters) – As the U.S. Federal Reserve looks set to begin whittling away at its stimulus in a first step towards eventual rate increases, the yen could see renewed interest as a funding currency for investments in higher-yielding currencies.
But any pressure on the yen from so-called carry trades is likely to be moderate compared with in the mid-2000s, when the Japanese currency weakened persistently on such trading, because current yield gaps between the yen and other major currencies remain too small, analysts say.
SINGAPORE/TOKYO, Sept 17 (Reuters) – The dollar wallowed
near a four-week low on Tuesday as traders waited with bated
breath for the outcome of the Federal Reserve’s two-day policy
meeting at which it’s expected to announce a modest reduction in
its bond-buying stimulus.
The dollar was little changed versus a basket of currencies
at 81.312, after having set a four-week low of 80.968 the
TOKYO (Reuters) – The dollar stayed near a four-week low on Tuesday after Lawrence Summers’ withdrawal from the race to lead the Federal Reserve reduced expectations of a faster pace of monetary policy tightening by the U.S. central bank.
The decision by the former U.S. Treasury secretary – who is regarded by investors as relatively hawkish – left Federal Reserve Vice Chair Janet Yellen as the front-runner. Traders said the Fed is likely to continue a slow, cautious approach to tightening policy if Yellen is named to replace current Chairman Ben Bernanke.
SYDNEY/TOKYO (Reuters) – The dollar dropped to two-week lows against a basket of major currencies on Thursday, as markets continued to chip away at its recent gains on growing doubts the Federal Reserve will scale back stimulus in any significant way next week.
The Australian dollar tumbled from a three-month high after surprisingly soft local employment numbers suggested markets may have been premature in pricing out the risk of further rate cuts.
TOKYO, Sept 11 (Reuters) – The yen hit a seven-week low
against the dollar and stood near multi-year lows against the
euro and sterling on Wednesday, as risk-aversion eased on signs
the United States is moving away from taking military action
against Syria following a diplomatic initiative from Russia.
Also helping risk currencies against the yen, which had seen
some safe-haven buying in recent weeks, was a string of solid
data out of China, including stronger-than-expected industrial
output that reinforced signs that China’s economy was
stabilizing after slowing for more than two years.
TOKYO (Reuters) – The yen was soft while the euro and risk currencies held firm on Wednesday on hopes a U.S. military strike against Syria may be averted, as well as signs of strength in the Chinese economy.
The dollar traded at 100.40 yen, having risen as high as 100.47 yen on Tuesday, its highest level in seven weeks, as Syria accepted a Russian proposal on Tuesday to give up chemical weapons, raising hopes of a diplomatic solution.
TOKYO, Sept 9 (Reuters) – Upbeat Chinese trade and inflation
data lifted Chinese shares to three-month highs and boosted
regional shares on Monday, while Japanese shares rallied and the
yen dropped after Tokyo won its bid to host the 2020 Summer
The dollar licked its wounds and U.S. debt yields were off
two-year highs after a disappointing U.S. jobs report on Friday,
which raised speculation the Federal Reserve may minimise the
size of a likely reduction in stimulus many investors expect
later this month.