Investors seek shelter in the yen
During Asian trading, the dollar acted weaker against the Japanese yen on Tuesday, as a recent sag in oil prices grabbed new gains in the evergreen buck. American currency retreated to ¥120.53 before getting back to ¥120.61, compared to ¥121.01 Monday trading in New York.
The US dollar was pushed by enthusiasm over the BOJ’s recent decision to introduce the country’s negative interest rates. However, investors sold the greenback after the steep dip in oil prices overnight as they looked for refuge in the yen.
On the New York Mercantile Exchange light, crude oil for March delivery hit 6%, thus giving back a huge portion of last week’s gains. As for Asian trading, oil lost 2% or 62 cents, reaching $31.01 a barrel. It caused a weak market sentiment in Asia and selling on Tokyo shares. Meanwhile, the benchmark Nikkei Stock Average decreased 0, 6% midday.
The senior manager of foreign exchange and financial products trading department of Mitsubishi Trust and Banking, Toshihiko Sakai told that the US currency mightn’t have his own moving initiative, and currency dealers require a great deal of courage to open yen buying positions. As follows from technical charts, the greenback may gain traction a bit later this week.