The USD/JPY tested new lows as the currency pair lost ground following a drop in the US 10-year bond yields. The US dollar remains strong against other major currencies such as the euro, the Canadian dollar, and the Great Britain pound.
The US dollar continues to trade at higher levels than it was before the hiking of interest rates by the Fed. However, Today marks the second consecutive day that the US dollar has lost ground against the Japanese yen since it hit an all-time high of 118.66 on Thursday last week.
The Japanese yen is gaining ground against the US dollar as investors move their money from US bonds to assets that are widely regarded as safe havens, which include the yen. The US dollar continues to lose ground against the yen despite the rising stock prices on both the Dow Jones and the Nasdaq indices.
Investors are awaiting a speech by Janet Yellen the Fed Chair who is slated to make an announcement regarding the state of the job market at 18:30 GMT today.
The Bank of Japan is also set to announce the future direction of its monetary policies on Tuesday during the Asian trading session.
The USD/JPY was trading at 116.69 as at 17:38 GMT having tested a low of 116.53 during today’s trading session. Although the GBP/USD pair was trading at 1.2413, it had broken below the 1.2400 level to trade at 1.2354 during intraday trading. The USD/CAD was trading at 1.3400 as the US dollar gained ground against the Canadian dollar.
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