Breaking News
0

Forex - Dollar Edges Up Against Yen In Early Asia, Currency Views Eyed

ForexJan 28, 2018 06:57PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Dollar up on yen

Investing.com - The dollar edged higher against the yen in early Asia on Monday with investors looking at continued overall weakness in the greenback sparked by comments last week from the US president and treasury and commerce secretaries that raised concerns of a currency war.

USD/JPY changed hands at 108.62, up 0.03%, while AUD/USD traded at 0.8117, down 0.09%. NZD/USD traded at 0.7361, up 0.19%.

In Asia, New Zealand reports its trade balance for December with a NZ$3.42 billion deficit seen on year. Japan reports household spending, seen down 0.6% on month and up 1,6% on year for December. As well, the unemployment rate is expected to hold steady at 3.7% and retail sales are seen up 1.8% on year.

Later in Australia, the NAB business confidence and NAB business survey are due.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.36% at 88.87.

On Tuesday, the Federal Reserve meeting, the last under the leadership of Janet Yellen before she hands the chairmanship over to Jerome Powell, will be in focus as well as Friday’s U.S. jobs report for January and Wednesday’s euro zone inflation data.

Last week, the dollar index recorded its largest weekly decline since June, following comments by the U.S. Treasury secretary earlier in the week welcoming a weaker currency.

The dollar slumped to three year lows against a currency basket after U.S. Treasury Secretary Steven Mnuchin said on Wednesday at Davos that a “weaker dollar is good for trade.”

The dollar recovered after President Donald Trump said Thursday the U.S. currency would get “stronger,” appearing to contradict Mnuchin’s comments. Trump added that he thought the remarks by his Treasury secretary had been taken out of context by investors.

Commerce Secretary Wilbur Ross mudding the waters even further detailing in Davos that "What was perfectly appropriate in 1945 is singularly inappropriate as we sit here this year. There's no longer a need to subsidize China, or Japan, or Europe with our money."

The comments were seen by markets as a departure from traditional U.S. currency policy. The risk of a weaker dollar is that it could undermine confidence in a wide swath of U.S. assets, including the U.S. Treasury market.

European Central Bank President Mario Draghi criticized Mnuchin’s comments about the dollar on Thursday, warning that such language violated longstanding international agreements designed to prevent currency wars.

Draghi said recent exchange rate volatility is a source of uncertainty and needs to be monitored for its impact on short term price stability.

The dollar remained lower after data on Friday showing that U.S. economy grew by an annualized 2.6% in the fourth quarter, rather than the 3% expected, down from 3.2% in the previous three months.

Forex - Dollar Edges Up Against Yen In Early Asia, Currency Views Eyed
 

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.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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
or
Sign up with Email