The Japanese currency, seen as a safe haven, again hardened against the dollar to test the 110 mark as Washington was plunged into renewed uncertainty after foul-mouthed spin doctor Anthony Scaramucci was axed as White House communications director Monday, just 10 days after being named to the post.
“The Washington political train wreck and month end flow has left the US dollar teetering on the brink of a cliff,” said Stephen Innes, who heads Asia-Pacific trading at Oanda.
“After struggling through a torturous time last week, and just when it appeared the USD onslaught had abated, the dollar bulls were swallowed up by the expanding ‘DMV’ political sinkhole.”
However, the market remains cautious ahead of US payroll figures to be released on Friday, dealers said.
“It’s difficult to envision more dollar selling ahead of the US economic data,” Innes added.