The safe haven was trading near seven-month highs against the US dollar on Tuesday as investor sentiment rocked by a currency crisis in Argentina.
The yen was at 105.27 per dollar as of 03:23 AM ET (07:23 GMT) after hitting 105.58 overnight, its strongest since January 3rd.
The Japanese currency, which attracts flights to time-tested security in the market, has strengthened this month amid growing signs that the US
Argentina’s pre-election results, which resulted in a domestic currency, stock and bond exchange rate, have also added support.
The currency gained additional momentum as protesters managed to close Hong Kong Airport on Monday amid ongoing demonstrations.
Off the market generated by events in Hong Kong and Argentina that are fueling the demand for the yen, “said Yukio Ishizuki, senior currency strategist at Daiwa Securities.” Speculators are increasing their long positions on the yen. ”
“The other target is the yen’s high against the dollar in early January, but even that threshold won’t pose much of a hurdle at this pace.” “There is really no sign of the yen’s advanced decline,” Ishizuki added.
The euro was weaker against the dollar, down 0.2% to 1.1188, returning to modest gains the previous day.
The single currency had risen further on Monday as Italian bond yields dropped to five-week lows in relief that ratings agency Fitch left the country’s credit rating unchanged.
Long-term prospects for the euro remain bleak with the European Central Bank expected to ease policy since September and lingering concerns about Italy.
The Australian dollar changed slightly to 0.6756 after the Chinese yuan found a tight pull after the People’s Bank of China set an average rate to a new 11-year low, but a level that was stronger than expected.
Aussie is vulnerable to developments in China, Australia’s largest trading partner. Aussie had lost 0.5% the day before, sliding in the yuan’s favor amid small signs of progress in US-China trade.
The Argentine peso was trading at 53.00 per dollar on Tuesday, having lost nearly 15% of its value to 52.15 per dollar on Monday after crashing to a low of 61.99 earlier.
The sale came amid fears of a potential return to interventionist policies, and prolonged a possible debt default after Argentina’s conservative President Mauricio Macri lost by a much wider margin than expected for the opposition in the presidential primary.forex.com
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