Greenback sags against yen as China trade data spooks traders
On Thursday, the Japanese yen managed to regain its strength against the greenback, as downbeat Chinese trade data helped to bring an uptick in the greenback against the Japanese currency to a steep end.
However, the greenback resumed its rally versus the Brexit-hit sterling.
Market participants swung back to the perceived safety of the Japanese yen after a larger-than-expected tumble in China’s exports affected fragile market optimism.
Earlier in the trading session, the Japanese yen had dropped to a 10-week minimum against the greenback amid surging expectations for a soar in American interest rates later in the year following the overnight issue of Fed gathering minutes.
The greenback was changing hands at ¥103.96, having surged earlier during the morning trading session to ¥104.63, its highest value since July 29.
The upward greenback run was already demonstrating signs of reaching its limit when the Chinese data cast a shadow on the global growth outlook, thus adding momentum to moves to lock in revenues on the greenback.