Yen Stronger Amid Concerns About Hard Brexit
January 16 2017 - 12:57AM
Dow Jones News
By Hiroyuki Kachi
The yen remained stronger against its rival currencies in Asian
trade on Monday, as lingering concerns about Brexit bruised
sentiment and prompted investors to buy the safety of the Japanese
currency.
Investors' worries about a hard Brexit scenario have hit the
U.K. pound hard, ahead of a key speech by U.K Prime Minister
Theresa May.
In her speech on Tuesday, Ms. May is expected to elaborate on
the U.K's priorities in negotiations over its exit from the
European Union. Several British newspapers reported that Ms. May
will emphasize that the U.K will leave the EU's single market to
regain control of immigration policy.
These headlines bolstered the Japanese currency, which investors
consider a safe haven in times of geopolitical and financial
instability.
The greenback weakened to Y113.97 before regaining some ground
to Y114.27 around 0450 GMT. That compared with Y114.75 late Friday
in New York.
The euro tumbled to Y121.21 from Y121.79. The pound, which fell
1.9% to Y136.84 from Y139.45 late Friday, was still weak at Y137.51
midday in Tokyo.
In addition to lingering Brexit concerns, investors were sitting
on the sidelines ahead of President-elect Donald Trump's
inauguration speech scheduled Jan. 20.
Many investors have tempered their optimism, as Mr. Trump last
week failed to give more details on his administration's plans for
fiscal stimulus, deregulation or tax cuts at his first news
conference since the U.S. elections.
"With sentiment turning to risk-off, investors buy the dollar
but they buy the yen more," said Marito Ueda, director at FX Prime
byGMO. "With plenty of worries, the near-term course of the market
is unpredictable," said Mr. Ueda.
Having nosedived as much as 1.6% against the dollar, the pound
trimmed its earlier losses later in the Asian trade. The pound was
changing hands at $1.2037 midday, down 1.1%. The euro was trading
around GBP0.8818 after jumping to GBP0.8852.
Among other currency trades, the euro fell to $1.0608 from
$1.0614 late Friday.
The WSJ Dollar Index, a measure of the U.S. dollar against a
basket of major currencies, was up 0.25% at 92.11.
Interbank Foreign Exchange Rates At 23:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 114.23-24 114.49-50 -0.23 114.50 113.99 -2.36
EUR/USD Euro 1.0610-13 1.0643-46 -0.31 1.0645 1.0606 +0.87
GBP/USD U.K. 1.2032-34 1.2182-84 -1.23 1.2183 1.2015 -2.53
USD/CHF Switzerland 1.0109-13 1.0084-88 +0.25 1.0116 1.0086 -0.77
USD/CAD Canada 1.3141-46 1.3112-17 +0.22 1.3148 1.3115 -2.22
AUD/USD Australia 0.7471-75 0.7499-503 -0.37 0.7503 0.7468 +3.76
NZD/USD New Zealand 0.7093-99 0.7126-32 -0.46 0.7129 0.7088 +2.47
Euro Rate
EUR/JPY Japan 121.20-24 121.84-88 -0.53 121.86 121.09 -1.53
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
January 16, 2017 00:42 ET (05:42 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.