NEW YORK The U.S. greenback hit a 1-1/2-week low towards the safe-haven yen on Tuesday after merchants booked earnings from latest multi-year highs within the dollar and parked their winnings within the Japanese foreign money.
The greenback, which hit recent practically nine-year highs towards a basket of main currencies early Tuesday, surrendered a few of these beneficial properties and hit a low towards the yen of 118.87 yen as merchants closed out worthwhile greenback bets. The greenback has risen over 12 % this 12 months towards main currencies.
The euro additionally fell towards the yen, and was final down zero.91 % towards the Japanese foreign money at 145.26 yen after hitting an almost 1-1/2-month low of 144.77 yen EURJPY=.
“People are coming into the year end and taking off some pretty profitable stuff,” mentioned Lane Newman, director of international alternate at ING Capital Markets in New York. He particularly cited profit-taking from bullish greenback bets.
Analysts famous that the greenback remained near latest highs. The euro hit a 29-month low towards the greenback of $1.2123 earlier within the session, whereas the greenback hit a recent 29-month excessive towards the Swiss franc of zero.9920 franc.
The euro was weak towards the yen and erased early beneficial properties towards the greenback on rising expectations that the European Central Bank will bolster its financial stimulus by saying outright purchases of presidency bonds, probably at its subsequent assembly on Jan. 22. That transfer is predicted to weaken the euro.
“In January, the odds of quantitative easing or further easing are pretty significant,” mentioned Sebastien Galy, senior international alternate analyst at Societe Generale in New York.
Activity was skinny forward of the New Year vacation. Japanese markets might be shut from Wednesday to Friday and can reopen subsequent Monday.
The greenback was final down zero.94 % towards the yen JPY= at 119.54 yen. The euro EUR= was final flat towards the greenback at $1.2151. The greenback was final down zero.06 % towards the Swiss franc CHF= at zero.9893 franc.
The U.S. greenback index .DXY, which measures the dollar towards a basket of six main currencies, was final down zero.22 % at 89.989. Sterling GBP= was final up zero.27 % towards the greenback at $1.5553.
On Wall Street, the benchmark S&P 500 .SPX inventory index was final down zero.40 %, whereas benchmark 10-year Treasury yields US10YT=RR have been final at 2.19 % after earlier hitting a one-week low of two.17 %.
(Reporting by Sam Forgione; Editing by Christian Plumb and Cynthia Osterman)