The dollar fell to four-month lows against the yen on Tuesday as investors cut exposure to riskier assets as Washington struggled with a partial government shutdown and open confrontation between the White House and the central bank. The dollar fell 0.27 percent to 110.12 yen in early Tuesday trade — its lowest level since late August and extending a seven-day losing streak. The yen also hit a 16-month high against the British pound, trading at 139.90 yen.
FxPro analyst said that U.S. stocks plunged more than two percent while oil prices sank more than six percent in a holiday-shortened Monday trade, as developments in Washington added to investors’ concern about a slowdown in the global economy next year. “People are saying this is a black Christmas,” said a veteran currency trader at a major Japanese bank. Wall Street’s volatility index, which measures implied volatility of stocks and is often seen as investors’ fear gauge, jumped to 36.10, the highest since Feb. 6, when it briefly shot up to as high as 50.30.
As a sell-off in equities escalated, U.S. Treasury Secretary Steven Mnuchin hosted a call with the president’s Working Group on Financial Markets, a body known colloquially as the “Plunge Protection team”. But holding such a meeting, which is normally only convened during times of heavy market volatility, did little to soothe the market. Some said the move may have backfired by hurting investor sentiment.
- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…
- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…
The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…
The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…
- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…
- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…
This website uses cookies