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Commodity currencies hit as oil slides; yen edges higher

Published 05/05/2017, 12:58 AM
Updated 05/05/2017, 12:58 AM
© Reuters. Light is cast on a Japanese 10,000 yen note as it's reflected in a plastic board in Tokyo, in this picture illustration

SINGAPORE (Reuters) - The Canadian dollar set a 14-month low and the Australian dollar hit a four-month trough as oil prices slid on Friday, while the safe haven yen edged higher as risk sentiment wavered.

The Canadian dollar slipped to C$1.3790

The Australian dollar slid to $0.7372

Commodity-linked currencies took their cues from a slide in oil prices, said Stephen Innes, a senior trader for FX broker OANDA in Singapore.

"I think that's really driving it... It's just a direct correlation with oil prices and a little bit of risk aversion coming into the dollar/yen," Innes said.

U.S. West Texas Intermediate (WTI) crude oil futures (CLc1) slid 3 percent on the day.

The dollar fell 0.3 percent against the yen to 112.19

The euro touched a six-month high of $1.0990

The euro last traded at $1.0985

Macron extended his lead in the polls over far-right candidate Marine Le Pen, according to an Elabe poll for BFM TV and L'Express published on Friday.

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Macron is seen getting 62 percent of the votes in the second round versus 38 percent for Le Pen, an increase of three points for the centrist candidate compared to his projected score in the last Elabe poll.

Investors are also awaiting Friday's U.S. non-farm payrolls report for additional insight into the Federal Reserve's rate likely trajectory through the end of the year.

Attention will also be on Fed officials including Fed Chair Janet Yellen and Vice Chair Stanley Fischer, who are due to speak on Friday.

The U.S. Federal Reserve kept interest rates unchanged on Wednesday and downplayed weak first-quarter economic growth, bolstering market expectations for the central bank to raise interest rates in June.

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