USD/JPY Near 106 But May Slide Further

The dollar has a high risk of falling versus the yen and adding to its biggest slide in six months, according to JPMorgan Chase & Co., with global markets roiled by concerns that growth and inflation are slowing.

The Bloomberg Dollar Spot Index held declines as traders pushed back expectations for the first Federal Reserve interest-rate increase to December 2015, after earlier this month seeing a rise as likely in July. The yen climbed for a sixth day against a basket of nine peers as futures signaled Asian stocks will drop after the Standard & Poor’s 500 Index touched a six-month low yesterday. The Australian dollar fell on speculation yesterday’s 1.3 percent advance was unwarranted.

“There’s a general unease across markets,” said Naohiro Nomoto, an associate for foreign-exchange trading at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “People seem to be dropping their long dollar-yen positions, and taking a watch-and-wait attitude,” he said referring to wagers on gains in the U.S. currency.

Bloomberg

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