Dollar Yen is Heavy

The dollar extended losses against the yen to hit a new two-month low. It was down 0.15 percent at 109.065 yen, after retreating 0.7 percent on Thursday.

The yen is perceived as a safe haven because Japan is the world’s biggest creditor country and investors there have tended to repatriate funds in times of crisis.

“Given the speculative flows positioning for possible yen repatriation, we could see the psychologically significant 109.00 level give way,” Stephen Innes, head of Asia Pacific trading at OANDA, wrote in a note.

Low U.S. Treasury yields are also weighing on the dollar. The yield on the benchmark 10-year Treasury yields fell as low as 2.197 percent overnight, their lowest level since June 28. They were at 2.201 percent on Friday.

The dollar pulled back 0.1 percent to $0.9635 Swiss francs on Friday, after dropping as much as 1.2 percent to a two-week low overnight.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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