Dollar Rebounds From 1-Month Lows against Yen

Tuesday,   16-Oct-2018   02:20 PM (IST)

The dollar rebounded from one-month lows against the yen on Tuesday as a selloff in global equities markets eased, while the New Zealand dollar pushed higher after upbeat inflation data overnight.USD/JPY was up 0.31% to 112.13 after hitting a one-month trough of 111.61 on Monday.The Japanese currency, sought by investors as a haven during bouts of market turmoil, weakened as major Asian stock markets rose overnight, but markets remained wary after a week of steep losses.Stock markets have been hard hit after U.S. Treasury yields soared to their highest level since 2011 last week amid expectations that the Federal Reserve will keep raising interest rates, eroding the value of equities.Concerns over the impact of trade conflict on the health of the global economy and fears over higher oil prices have also fueled the selloff.The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, dipped 0.07% to 94.70.Sentiment on the dollar was hit on Monday after data showing that U.S. retail sales barely edged higher in September, but the same report also indicated that consumer spending ended the third quarter with strong momentum.The euro pushed higher, with EUR/USD rising 0.11% to 1.1592, but gains were held in check after Italy’s populist government approved its new budget, despite criticism from Brussels that it is in breach of European Union fiscal rules.Sterling gained ground, with GBP/USD up 0.28% to 1.3187 as markets awaited the latest UK jobs report in the face of deadlocked Brexit negotiations.The pound was also a touch higher against the euro, with EUR/GBP dipping 0.11% to 0.8791.Meanwhile, the New Zealand dollar was stronger, with NZD/USD up 0.31% to 0.6569 after data overnight showing that inflation rose more strongly than expected in the third quarter.