During Tuesday’s Asia trade, the yen appeared to be stronger than its rival currecies. So, it hit its one-week high agaisnt the greenback, while weakening Japan’s shares urged market participants to look for safety in Japan’s currency.
In Tokyo, the greenback slumped to ¥112.75, the buck’s lowest since March 1. Then it regained slightly to ¥113.02. Notwithstanding improved sentiment on surging crude prices as well as a one-month high for the 10-year American Treasury yield , the evergreen buck kept going downwards against the Japanese yen overnight.
During Asia trade, the US dollar continued its decrease, as Nikkei Stock Average plunged after the opening bell, thus stimulating demand for haven assets, including Japan’s currency. Midday the benchmark Nikkei came down 0.5% and put itself on track for its gloomy close by the end of the session.
Currently, the currency market doesn’t have a clear direction, as many financial analysts state. Next week traders hope to get fresh cues ahead of the FOMC. Most probably, the dollar will keep fluctuating within the range of ¥111-¥115 at least till the upcoming U.S. Federal Open Market Committee’s coming policy-setting gathering.