FOREX – Safe haven yen drops to month low as Omicron worries about ebb


Band Kevin Buckland

TOKYO, December 28 (Reuters)The yen traded near a one-month low against the dollar on Tuesday as safe-haven stocks fell out of favor following the Wall Street rally to an all-time high overnight, with the uncertainty of ‘Omicron relegated to the background.

Japanese currency weakened to 114.935 yen per dollar JPY = EBS for the first time since November 26, approaching the low of the year at 115.525 reached on November 24.

The S&P 500 .SPX closed at a record low on Monday after strong US retail sales data allayed concerns over the highly infectious variant of the Omicron coronavirus, which forced thousands of cancellations and flight delays during the holidays and stranded cruise ships.

The US dollar, also seen as a safe haven, continued to languish towards the bottom of its recent trading range against a peer basket, even after a hawkish tilt by the Federal Reserve that prompted policymakers to signal a three-quarter point interest rate. increases next year.

The dollar index = USD, which measures the currency against six major rivals, was little changed from the previous session at 96.076.

“Markets around the world are bullish” that Omicron will not derail an economic recovery, reducing demand for safe-haven currencies, primarily the yen, said Osamu Takashima, head of G10 FX strategy at Citigroup Global Markets Japan .

The rally in US stocks “implies that investor risk appetite must be very, very strong right now” despite expectations of a faster Fed tightening, he said.

The yen is expected to test its 2021 low in the near term, he predicted.

Sterling GBP = D3, which often rises as risk sentiment improves, held near the overnight high of $ 1.3445.

Australian dollar AUD = D3, often seen as a liquid indicator of risk appetite, climbed back to a three-week high of $ 0.6850 reached on Friday.

The euro EUR = EBS Consolidated near the top of its range against the dollar this month, little changed from Monday at $ 1.13255.

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Price of currency offers at 0123 GMT

The description

RIC

Last

US Close previous session

PCT change

Percentage change for the current year

High offer

Low offer

Euro dollar

EUR = EBS

$ 1.1324

$ 1.1327

-0.02%

-7.31%

+1.1332

+1.1325

Dollar / Yen

JPY = EBS

114.8600

114.9100

+ 0.00%

+ 11.26%

+114.9450

+114.7800

Euro / yen

EURJPY = EBS

130.08

130.13

-0.04%

+ 2.49%

+130.2200

+130.0300

Dollar / Switzerland

CHF = EBS

0.9173

0.9178

-0.08%

+ 3.65%

+0.9176

+0.9165

Pound sterling / dollar

GBP = D3

1.3433

1.3442

-0.04%

-1.65%

+1.3442

+1.3434

Canadian dollar

CAD = D3

1.2794

1.2786

+ 0.05%

+ 0.46%

+1.2794

+1.2788

Australia / Dollar

AUD = D3

0.7233

0.7240

-0.08%

-5.95%

+0.7240

+0.7234

New Zealand dollar / Dollar

NZD = D3

0.6810

0.6815

+ 0.12%

-4.99%

+0.6817

+0.6823

All spots FX =

Tokyo spots AFX =

Points of Europe EFF =

Volatilities VOLFX =

BOJ Tokyo Forex Market Information TKYFX

Global exchange rateshttps://tmsnrt.rs/2RBWI5E

(Reporting by Kevin Buckland; Editing by Sam Holmes)

((Kevin.B [email protected];))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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