Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Yen claws back ground as looming winter chills vaccine cheer

Forex Nov 17, 2020 07:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Illustration photo of a Japan Yen note

By Tom Westbrook

SYDNEY (Reuters) - The safe-haven Japanese yen sat near a one-week high and a steady U.S. dollar held commodity currencies in check on Wednesday, as worries about rising coronavirus cases tempered optimism around promising vaccine trials.

At 104.14 per dollar, the yen has recouped more than half of the steep losses it suffered last week after Pfizer (NYSE:PFE) announced it had developed a working COVID-19 vaccine.

Bitcoin (BTC=BTSP), sometimes regarded as a haven asset or at least a hedge against inflation, has surged to a three-year high against the dollar and the risk-sensitive Australian and New Zealand dollars were a fraction softer, along with stocks.

"The slight cooling of equity sentiment has put a cap on currencies," said Westpac currency analyst Imre Speizer.

"We know we've got a vaccine. Now it's about distribution and how quickly it can start to make a difference, which is going to be quite a few months away."

Before then, a tough winter looms.

Surging cases have driven record hospitalisations and fresh restrictions on gathering in the United States, while new outbreaks vex authorities in Japan, South Korea and Australia.

Federal Reserve Chair Jerome Powell said on Tuesday that there was "a long way to go" to economic recovery.

The Australian dollar slipped 0.3% on Tuesday and was a shade weaker still on Wednesday at $0.7288. The New Zealand dollar was 0.1% softer at $0.6889. [AUD/]

The euro (EUR=) was steady at $1.1862 and against a basket of currencies the dollar (=USD) held at 92.439 - a little softer than earlier in the week as a slight bond rally has knocked the shine off U.S. Treasury yields. [US/]

"It's back to pondering short-term negatives vs longer-term vaccine positives, and that's creating volatility," ANZ analysts said in a note. "Vaccine deployment isn't an immediate fix ... expect things to remain mixed and messy."

Elsewhere sterling edged higher as traders hoped for a Brexit trade deal breakthrough. [GBP/]

Britain's chief negotiator David Frost has told Prime Minister Boris Johnson to expect a Brussels trade deal "early next week", The Sun newspaper reported, with "a possible landing zone" as soon as next Tuesday.

As soft economic data in the United States weighed on dollar sentiment, strong industrial output in China kept the yuan's barnstorming run alive, sending it to an almost 29-month high of 6.5457 per dollar in offshore trade . [CNY/]

The Chinese yuan has gained nearly 9% against the dollar since late May, despite the central bank taking various actions to temper its strength.

Later on Wednesday British inflation figures are due and several U.S. Fed members make speeches. In emerging markets, focus is on a Bank of Thailand meeting, though most economists expect rates to be kept on hold.


Currency bid prices at 11:19AM in Sydney (0019 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Euro/Dollar (EUR=EBS) $1.1861 $1.1861 +0.03% +5.82% +1.1868 +1.1861

Dollar/Yen 104.1350 104.1900 +0.00% -4.07% +104.1900 +0.0000

Euro/Yen (EURJPY=) 123.50 123.57 -0.06% +1.27% +123.6300 +123.5100

Dollar/Swiss 0.9114 0.9116 -0.03% -5.82% +0.9115 +0.9112

Sterling/Dollar 1.3253 1.3250 +0.04% -0.06% +1.3263 +1.3250

Dollar/Canadian 1.3108 1.3107 +0.02% +0.91% +1.3110 +1.3102

Aussie/Dollar 0.7289 0.7300 -0.14% +3.89% +0.7299 +0.7288

NZ 0.6886 0.6894 -0.10% +2.35% +0.6893 +0.6887


All spots

Tokyo spots

Europe spots


Tokyo Forex market info from BOJ

Yen claws back ground as looming winter chills vaccine cheer

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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.
Comments (1)
Vernon Orim
Vernon Orim Nov 17, 2020 7:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yuan up 9% on the dollar since May, lol. Devils in the detail
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
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'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
Continue with Google
Sign up with Email