Greenback falls abruptly against yen
On Wednesday, during Asia trade, the major US currency dipped against the Japanese yen, affected by profit-taking after the dollar’s recent strength.
The major American currency dropped to ¥108.60, late in the morning, in Tokyo, right before stabilizing at ¥108.68. By the way, late on Tuesday, in New York it was worth ¥109.39.
In fact, the greenback managed to collect downward momentum against its primary Japanese rival as market participants simply locked in their revenues. The evergreen buck gained approximately 2% against the Japanese yen for the last couple of days, when Japan’s authorities repeated verbal warnings as for the yen’s strength.
On Wednesday, the greenback’s drop below the ¥109-threshold activated stop-loss sell orders, thus bringing the greenback lower. Furthermore, weakness in the Asian stocks also helped traders to purchase the yen, traditionally considered to be a safe-haven asset during hard times.
The Nikkei Stock Average appeared to be 0.2% higher midday, however, the index briefly lost 1.5% early in the session.