【realm of the mad god robes】FOREX-Yen gains as new year trade starts on cautious note
* Graphic: World FX rates in 2018
http://tmsnrt.rs/2egbfVh
* Yen strengthens in early Asian trade
* Aussie dollar falls by 0.2 percent
By Vatsal Srivastava
SINGAPORE,realm of the mad god robes Jan 2 (Reuters) - The dollar eased against the yen on Wednesday as caution prevailed on the first trading day of the new year on wider concerns about global economic growth, the U.S. government shutdown and a slower pace of Federal Reserve rate hikes.
The safe-haven yen gained 0.1 percent against the dollar to 109.60 in early Asian trade. Trading volumes remain light as global markets reopened after the New Year's Day public holiday. Japanese markets remain closed on Wednesday.
The yen has gained for three straight weeks as risk-off sentiment rattled financial markets.
However, while market participants remain concerned about the broader investment outlook, renewed hopes for a resolution to the U.S.-Sino trade dispute have provided some cause for optimism. On Sunday, U.S. President Donald Trump indicated that progress had been made toward a potential settlement of trade tensions which had plagued stock markets for much of 2018.
"It's still difficult to be strongly positive given all the uncertainties. Hopefully, there will be progress on trade talks but the market is cautious and that's benefiting the safe-havens such as the yen," said Sim Moh Siong, currency strategist at Bank of Singapore.
"The yen's main driver over the last few sessions has also been the fall in U.S. yields...market thinks the tightening of financial conditions will make the Fed pause in 2019," added Sim.
In December, the greenback weakened by around 3.8 percent versus the yen.
On Wednesday, the dollar index was marginally lower from Monday's close, fetching 96.08.
Rising interest rates drove the dollar's outperformance in 2018 with the Fed raising rates four times over the year, as unemployment remained at historically low levels and wage pressures rose.
However, the dollar has been under pressure in recent weeks as investors grow increasingly nervous about a slowdown in the U.S. economy and peak corporate earnings growth.
The U.S. 10-year treasury yield fell by around 35 basis points over December to 2.69 percent as bond traders bet that the Fed would not be able to raise rates in 2019 due to slowing economic momentum.
The euro was flat at $1.1464. Traders expect the single currency to remain under pressure as both growth and inflation in the eurozone remain below the European Central Bank's expectations. The euro lost 4.4 percent of its value versus the dollar in 2018.
Elsewhere, sterling was marginally lower at $1.2750. The British pound lost 5.5 percent versus the greenback last year due to Brexit woes.
Story continues
With three months until the United Kingdom is due to leave the European Union, British Prime Minister Theresa May's Brexit deal is floundering and traders expect sterling to remain under pressure.
The Australian dollar was down 0.18 percent at $0.7046 in early Asian trade, reflecting China's worsening growth outlook. Data on Monday showed factory activity in China, Australia's largest trading partner, contracted in December for the first time in more than two years. (Reporting by Vatsal Srivastava; Editing by Sam Holmes)
View comments
(责任编辑:Focus)
- SponsorsOne Assembles Management Dream Team For Craft Alcohol Product Development, Branding, Marketing, Sales and Distribution
- BRIEF-Kweichow Moutai Sees 2018 Net Profit Up About 25 Pct Y/Y
- W.R. Berkley Corp. Appoints Philip Welt as GC, Executive VP
- Palm opens higher on India import tax cut, but gains seen limited
- Canada Cardiac Rhythm Management Devices Market Outlook to 2025 - Cardiac Resynchronisation Therapy (CRT), Implantable Cardioverter Defibrillators (ICD), Implantable Loop Recorders (ILR) and Pacemakers
- Spotify Rolls Out Standalone Streaming On Apple Watch App: TechCrunch
- Dynavax Announces FDA Advisory Committee Meeting to Review HEPLISAV-B
- BRIEF-China Solar Energy Holdings Says Lam Po Ling Pearl Has Resigned As An Executive Director
- Jaden Smith Explains Why He Can’t Hang Out With Kanye West & Drake Anymore
- Is Innovative Industrial Properties (IIPR) Stock Outpacing Its Finance Peers This Year?
- Fox's Ingraham taking vacation as advertisers flee amid controversy
- 2018: A Year in Review for a Roller-Coaster Market
- Is Warren Buffett Right to Be Holding UPS?
-
As coronavirus misinformation spreads on social media, Facebook removes posts
By Katie PaulSAN FRANCISCO (Reuters) - Facebook Inc said it will take down misinformation about Chin ...[详细] -
Jan 2 (Reuters) - Zhongtian Financial Group Co Ltd :* SAYS UNIT AND PARTNER PLAN TO SET UP PROJECT C ...[详细]
-
BRIEF-Black Peony's Shareholders To Unload Up To 6.0 Pct Stake Between March 4 And Aug 31
Feb 1 (Reuters) - Black Peony Group Co Ltd:* SAYS SHAREHOLDERS PLAN TO UNLOAD UP TO 6.0 PERCENT STAK ...[详细] -
Usher Reveals ‘Coming Home’ Album Tracklist, With Features From Latto, Burna Boy, 21 Savage & More
Usherfinally unveiled the tracklist for his upcoming ninth studio album,Coming Home, revealing featu ...[详细] -
Dublin, July 01, 2020 (GLOBE NEWSWIRE) -- The"North America Carbon Dioxide Market 2019-2028"report h ...[详细]
-
ITT Inc. (NYSE:ITT) Has A ROE Of 12%
One of the best investments we can make is in our own knowledge and skill set. With that in mind, th ...[详细] -
Bulgaria extends bid deadline for Sofia airport tender again
SOFIA, Jan 2 (Reuters) - Bulgaria has extended the deadline for submitting bids to run Sofia's airpo ...[详细] -
Should Union Bankshares Corporation (NASDAQ:UBSH) Be Part Of Your Dividend Portfolio?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to ...[详细] -
Trust Stamp Prepares to Pursue Direct Public Listing on Euronext Growth Market
Atlanta, June 02, 2020 (GLOBE NEWSWIRE) -- T Stamp Inc. trading as Trust Stamp, an AI powered authen ...[详细] -
BRIEF-Great Chinasoft Technology And Partners Plan Financial Technology Buyout Fund Worth 1 Bln Yuan
Jan 2 (Reuters) - Great Chinasoft Technology Co Ltd :* SAYS IT AND PARTNERS PLAN TO SET UP FINANCIAL ...[详细]
'Big shoes to fill': UniCredit shares tumble as CEO Mustier quits
BidNet Announces Launch of the Missouri Purchasing Group
- Founder Alexander Reilley Just Bought 10.0% More Shares In Loungers plc (LON:LGRS)
- FCPA Lawyer Predicts GCs, CCOs Have Targets on Their Backs in 2019
- What Investors Should Know About Cpl Resources plc’s (ISE:DQ5) Financial Strength
- Detection Technology Plc Financial Statements Review January-December 2018
- Silver Price Daily Forecast – Silver Attempts To Break Through The Key Resistance Level
- GOGL - Repurchase of shares
- Is Concho Resources Inc. (NYSE:CXO) Excessively Paying Its CEO?