Dollar-yen closed in NY at Y94.43 after recovering off a pullback low of Y94.02. Rate came under fresh sell pressure into Asia as risk took a knock from the negative opening in China stocks, this market reacting to an order for banks to tighten controls over wealth management products. The downside move picked up momentum as Tokyo market opened, with Japanese exporters the stand out sellers for month-FY end, with macro also adding weight as rate eased back toward the NY low. A minor bounce off Y94.02 to Y94.17 attracted fresh sellers as they turned their attention to reported stops sub Y94.00. Rate touched a low of Y93.98 before profit take demand quickly emerged to edge rate back up to Y94.24 into Europe. Euro-yen closed in Ny at Y120.68, after recovering off its show under Y120.00 at Y119.95. This rate dipped in tandem with dollar-yen to Y120.14, though a slight positive tone in the euro provided some buoyancy and allowed for a late recovery to Y120.62 into Europe. Yen open to end month flows though Japanese markets will be open Friday, with talk earlier in the week that a government pension fund could show dollar-yen demand interest at Friday’s Tokyo fix.
EasyForexNews Research Team