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Greenback reaches 15-month minimum vs. Japanese yen
On Thursday, the evergreen buck managed to extend its drop versus the Japanese yen and reached a fresh 15-month minimum, with investors set for another near-term dive in the greenback.
The US currency sagged below Wednesday's minimum of 106.725 yen and headed south to 106.30 yen, which is its weakest value since November 2016. The given outcome marked a 3.8% dive from its early February high of 110.50 yen.
Later the US dollar partly offset some of its losses, sliding no more than 0.4% to 106.56 yen.
Financial analysts and market participants told that the next support level for the evergreen buck might account for 105 yen.
Some traders told that speculative purchasing of the Japanese yen definitely helped to down the evergreen buck, with stop-loss dollar selling later contributing to the dive versus the Japanese currency.
On Wednesday, the major American currency obtained support from a stronger-than-anticipated ascend in January’s American consumer prices, which spurred bets the Fed might have interest rates lifted up to four times this year.
However, revenues in the evergreen buck turned to be short-lived, while this asset finally retreated versus key rivals notwithstanding the change in hopes for American interest rates.
On Thursday, the common currency soared 0.1% hitting $1.2459 in Asia trade having climbed 0.8% on Wednesday. The British pound didn’t change, hovering over $1.4004, having ascended 0.8% yesterday.
In the wake of the greenback’s abrupt sag versus Japan’s currency for the last weeks, a great number of traders were pondering whether Japanese exporters and this country’s investors would accelerate hedging their exposure to the greenback or not.
Perhaps, they would be more prone to selling their dollars with the aim of protecting downside risk for further weakness in the US currency, as some financial experts point out.
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