Forex – Yen Strengthens On Risk Aversion; China Sees New Central Bank Chief

Forex – Yen Strengthens On Risk Aversion; China Sees New Central Bank Chief

The dollar dropped below the 90 markThe dollar dropped below the 90 mark  – The dollar dropped below the 90 mark as the Asia market opened on Monday morning. Boosted by risk aversion, the anti-risk Japanese yen performed the best last week and continued to remain strong as the Asia market opened on Monday.

The that tracks the greenback against a basket of six major currencies last stood at 89.87 at 10:50PM ET (02:50GMT), up 0.08%. The dollar index was traded as high as at 90.37 last Friday.

The pair shed 0.16% to 105.84, a rather sharp slump from last week’s high of 107.23. The country’s trade recovery continued as came at 1.8% in February, roughly in line with the expected 1.9% increase. However, exports to China, the country’s biggest trading partner, fell 9.7% year-on-year.

Japan’s Prime Minister Shinzo Abe is still embroiled in the political scandal that involves altered documents linked to his wife. The political tensions in the country pushed up the save-haven currency as Abe’s approval ratings took a hit after a nationwide survey was conducted.

The pair traded at 0.7701, up 0.17%. The Reserve Bank of Australia still gives no signs of rate hikes, but the meeting minutes of the Bank due on Tuesday are expected to give some direction to the Aussie. The country’s job data in February are also due on Thursday.

Elsewhere, the People’s Bank of China (PBOC) set the fix rate of yuan against the dollar at 6.3141 versus Friday’s 6.3238. The pair eased 0.04% to 6.3311.

The personnel reshuffle in China’s government and the PBOC were in focus as the central bank nominated its vice governor Yi Gang to replace its current head Zhou Xiaochuan, according to parliament delegates.

In addition, China’s February rose month-on-month in 44 cities, compared with 52 cities in January. Beijing’s new home prices fell 0.3% month-on-month.

Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.