The yen fell against all its major peers after the head of an advisory panel called on Japan’s Government Pension Investment Fund to start cutting domestic debt holdings right away.
The Bloomberg U.S. Dollar Index strengthened as investors weighed whether payrolls data due today will encourage the Federal Reserve to consider trimming stimulus as early as this month. The U.S. economy added 185,000 jobs in November, a Bloomberg News survey showed before the Labor Department report. Australia’s dollar was set to match its longest stretch of weekly declines since 1985.
“If there are less willing buyers for Japanese bonds, that’s going to put downward pressure on the yen,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “If we get comfortably above the 200,000 mark for payrolls, that’s going to be positive for the U.S. dollar.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.