Greenback pulls back ahead of UK referendum

On Wednesday, the evergreen buck traded slightly lower against the Japanese yen as well as the common currency during Asia trade, with traders mostly staying away from taking strong positions ahead of Thursday’s British vote.  

The greenback was worth ¥104.50, compared to Tuesday’s outcome ¥104.77 in New York. The common currency hit $1.1255, surging a bit from Tuesday’s reading of $1.1242.    

The WSJ Dollar Index, a typical measure of the greenback against six major currencies, slumped 0.15%, trading at 85.63.

The currency market has already moved along with surveys regarding Britain’s vote on whether this European country should stay in the EU or leave it. After worries regarding a victory of the “Leave” camp, recent British surveys have dropped a hint that the ‘Remain” camp is gradually gaining ground, thus making traders buy the yen, which is supposed to be a good safe-haven asset.   

At first, market participants sold the greenback against the yen, then short covering kicked in this week.




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