Dollar edges up as investors move back into oil and stocks
During Tuesday’s Asia trade the Japanese yen weakened against its key counterparts, following improved market sentiment, favorable for sales of Japan’s national currency.
The greenback came up to its high of ¥109.23 right before trimming its revenues to about ¥109.06.
A turnaround in the market’s mood built around a recovery in US and eurozone stocks and a rebound in crude prices, helped traders to sell the yen, which boasts a reputation of a safe harbor for a meltdown.
Right before the opening bell of the Tokyo market, traders were actively selling the yen in a hope for a huge revenue for the Nikkei Stock Average, which surged 3.7% after its two-session losing marathon.
However, the greenback then struggled to soar further having surpassed the ¥109-threshold earlier in the trading session.
Financial analysts point out to the greenback weighed down. It follows from their explanation that market participants simply lock in revenues to even sell on recovery. Such a behavior definitely caps the greenback’s upside down, notwithstanding the stock market’s abrupt profits.