Greenback retreats from 13 1/2-year peak
On Tuesday, the greenback took a breather, as market participates consolidated the gains built on hopes for increased fiscal spending as well as higher inflation under a Trump administration.
An earthquake of magnitude 7.4 and also the subsequent tsunami warning in northern Japan provoked knee-jerk selling of the greenback for safe-haven yen in early trade.
While the earthquake disrupted cooling functions at a nuclear plant, there weren’t any reports of deaths in the hours after the earthquake kicked in.
Investors played down the impact of the earthquake, telling the greenback had been due for some long liquidation against the Japanese yen after ascending steeply for the last two weeks.
The greenback held steady against the Japanese yen at 110.76 yen , having pared its losses after dropping to as low as 110.27 yen on Tuesday.
On Monday, the major US currency had set a near six-month peak of 111.36 yen, which amounted to a revenue of 10% from its November 9 drop near 101 yen.