Increased Risk Aversion Boosts Japanese Yen, USD Lower
The Japanese yen continues to rise on Thursday due to trade tensions and speculation that the Bank of Japan is under pressure to move away from its super-soft monetary policy. The Japanese currency was lifted on Wednesday after reports that Bank of Japan board members had disagreed on how far interest rates should be allowed to move from the central bank's target.
The yen rose to a ten-day high against the dollar of 110.76 and strengthened against the euro. The single currency fell to $1.15765, not far from a 2018-low of $1.15080. The US dollar had also weakened after hitting a three-week high on Monday.
The British pound is weakening sharply as investors ramp up bets on Britain leaving the European Union without an agreement with Brussels on their future relationship. Today, the GBP/USD pair hit $1.2842 following a drop to $1.2854 the previous day, its lowest in a year.
The New Zealand dollar fell by about 1%, which is the lowest value since May 30, 2016, after the Reserve Bank of New Zealand (RBNZ) unexpectedly decided to keep interest rates at record lows until 2020 due to disappointing economic activity.
Markets remain worried by the global trade conflict but traders are focusing on talks in Washington on Thursday in which Japan will seek to avert tariffs on its car exports and fend off US demands for a bilateral free trade agreement.