The U.S. dollar lost 4 percent against the yen over the last two days.
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
NEW YORK/LONDON: Most bouts of global market volatility in recent years have featured one constant: The U.S. dollar strengthens as investors clamor for the perceived safety of U.S. assets like Treasurys. By contrast, over the last two previous trading days, the dollar lost 4.0 percent against the yen, while dropping to a seven-month low versus the euro Monday, as world stock markets slumped and emerging market currencies plummeted.In the short term, two factors may be pressuring the dollar against the euro and yen.In the past year, the U.S. dollar index gained about 12 percent, as investors priced in a rise in short term interest rates by the Fed.The U.S. dollar was also hit in the past few days by traders closing out carry trades in yen and euros in order to protect themselves against further market volatility.The options market, in the near-term, sees more U.S. dollar weakness.
FOLLOW THIS ARTICLE