On Tuesday, the greenback stood still against the major Japanese currency, following strength in Asian shares clearing up market sentiments, thus inviting to sell haven assets.
The evergreen buck was traded at ¥114.54 right after hitting ¥114.87 earlier during Asia trade. However, in New York the currency pair reached ¥114.58 late on Monday.
With market participants still feeling the impact from yesterday’s Japanese stocks leap, higher commodities prices as well as robust gains in Asian stocks greatly helped to brighten the overall market mood, thus assisting investors to sell the perceived safety of the yen.
Meanwhile, the Nikkei Stock Average grew to 16,054.43 o 0.2% midday in Tokyo after going up 7.2% on Monday. The Shanghai Composite Index soared to 2833.30 or 3.2%.
Currently most market participants observe unrolling of risk-off or yen buying positions at rather a gradual tempo, though it doesn’t seem dramatic. To add to this, after the greenback’s steep fall below ¥111 amid recent great fluctuations, the major US currency is still vulnerable to selling on recovery if it comes closer to the level ¥115. It feels like the greenback will most likely be traded in a ¥111-¥116 range for a while.