Dollar dips vs yen after U.S. yields pull away from highs
Mon Dec 26 2016
Jim Andrews (452 articles)

Dollar dips vs yen after U.S. yields pull away from highs

The dollar dipped against the yen on Monday, edging lower down after U.S. Treasury yields dipped on mixed economic data.

Trading was subdued with many key markets shut on Monday for the Christmas holidays. The greenback was down 0.2 percent at 117.300 yen. The euro was steady at $ 1.0457.

Currencies took stock of the U.S. debt market, which saw the benchmark 10-year note yield end lower on Friday. The yield pulled back from 27-month peaks scaled mid-month following Friday’s release of U.S. economic indicators that included strong housing and consumer confidence data but also numbers that pointed to slower household income.

“The currency market is likely to lack incentives as major markets in Asia, Europe and North America will be closed. That said, dollar/yen risks drifting below 117 on caution toward the Trump administration’s protectionist policies,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.

U.S. President-elect Donald Trump last week named economist Peter Navarro, known as a China hawk, to head a newly formed White House National Trade Council.

The Australian dollar was flat at $ 0.7178 AUD=D4 after dipping to $ 0.7160 on Friday, its lowest since May, following a media report saying Chinese President Xi Jinping was open to growth China’s economy falling below 6.5 percent.  Australia is sensitive to the economic prospects of China, its major trading partner.

Jim Andrews

Jim Andrews

Jim Andrews is Desk Correspondent for Global Stock, Currencies, Commodities & Bonds Market . He has been reporting about Global Markets for last 5+ years. He is based in New York

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