The yen continued with its losing streak for the third day versus the dollar after European and Asian stocks surged, resulting in reduced investor appetite for the safe-haven currency.
The yen declined 0.2 percent to 102.31 a dollar in London’s early trade after tumbling to 102.36, its lowest point since May 2. The yen also fell 0.3 percent to 140.85 a euro. The U.S. dollar rose 0.1 percent to $1.3767 a euro after earlier touching $1.3745 last Friday, its highest since April 8.
The yen has also taken a hit from market speculation that Japan’s economy is growing at a much slower pace than its peers and hence the central bank may inject fresh stimulus to boost growth. The U.S. dollar’s advance was helped by analysts’ expectations that U.S. April retail sales increased 0.4 percent, its third consecutive month of growth. The Commerce Department is expected to release the data today in Washington.
“Risk appetite boosted by stocks gains triggered yen selling,” Junichi Ishikawa, a Tokyo-based analyst at IG Markets Securities told Bloomberg. “The China data had some dampening effect on the Aussie, although the declines have been limited.”
Stoxx Europe 600 rose 0.2 percent while the MSCI Asia Pacific Index surged 1 percent. The Bloomberg Dollar Spot Index, which monitors the greenback performance relative to 10 major counterparts, remained slightly unchanged at 1,008.63, after earlier edging up to 1,008.90, its strongest since May 2.
The Japanese currency has declined 4.8 percent in the past half-year, making it the second-worst performing currency. The euro has advanced 0.7 percent while the dollar fell 1.5 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org