USDJPY slides as does the Nikkei

The beleaguered dollar slumped again Friday after a new report on the investigation into alleged Russian interference in the US election sparked fresh turmoil, even as Wall Street eked out a new record.

The greenback was under renewed pressure against the Japanese yen, testing 110 in Tokyo, with analysts warning it could go lower still with US wages data out later in the day unlikely to offer much relief.

The emboldened yen, seen as a safe haven currency, acted as a drag on the Nikkei as it erodes exporters’ international competitiveness, while Shanghai edged higher and Hong Kong was flat in morning trade.

Sydney stocks stabilised while the local dollar softened after the central bank cut its growth forecast.

The revelation by the Wall Street Journal that special counsel Robert Mueller has empanelled a grand jury to investigate Russia’s interference in the 2016 presidential election — a step towards possible criminal indictments — triggered a furious reaction from President Donald Trump and dented gains on Wall Street.

Stephen Innes, who heads Asia-Pacific trade at forex firm OANDA, noted: “Another toxic elixir for the greenback is brewing.”

AFP

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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