The US dollar today weakened against the Japanese yen as the markets became risk averse following a decline in US treasury yields. The US dollar is experiencing its worst performance this month as the USD/JPY currency pair declined to record lows as investors sold the greenback and bought the Japanese yen.
The greenback performed extremely poor during today’s session as tracked by the US Dollar Index given that the index had declined from its opening price of 100.97 to trade at 100.70 at the time of writing.
The decline in the greenback’s performance was triggered by the massive decline of US stocks listed on the various exchanges and amid a slight decline in US bond yields. At the time of writing, the Dow Jones Industrial Average had declined by 0.55% and the Nasdaq had declined by 0.85%. The yields of the Us 10-year bonds had declined to 2.30% from 2.36%.
The waning risk appetite in the global financial markets has boosted the Japanese yen, which is considered a safe haven currency by most investors. The Bank of Japan also appears have reversed its policy approach as the BoJ Governor, Haruhiko Kuroda, stated today that the bank is well equipped to reduce its quantitative easing program.
The USD/JPY currency pair is likely to be affected by the release of the US MBA mortgage applications data tomorrow.
The USD/JPY was trading at 109.88 as at 17:07 GMT having opened the day’s session trading at 110.76. The EUR/USD was trading at 1.0608 having hit a daily high of 1.0629 and retraced some of its gains.
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