Breaking News

Commodity currencies hit as oil slides; yen edges higher

ForexMay 05, 2017 12:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© 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 per U.S. dollar at one point, its weakest level since late February 2016. The loonie was last down 0.3 percent at C$1.3786.

The Australian dollar slid to $0.7372 at one point, its lowest level since Jan. 11, last trading at $0.7381, down 0.4 percent on the day.

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 , pulling away from a seven-week high of 113.045 yen set on Thursday.

The euro touched a six-month high of $1.0990 at one point, supported by expectations that centrist Emmanuel Macron will win the final round of France's presidential election on Sunday.

The euro last traded at $1.0985 , little changed on the day but up 0.8 percent for the week.

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.

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.

Commodity currencies hit as oil slides; yen edges higher

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email