The yen and Australian dollar nursed heavy losses early on Wednesday, having suffered a swift turnaround in fortunes as a shakeout in long dollar positions came to an abrupt end following upbeat U.S. retail sales data.
Traders said the retail numbers helped offset Friday’s disappointingly soft payrolls and halted a two-day slide in U.S. Treasury yields. That in turn gave the greenback a shot in the arm.
The dollar rallied more than 1 percent against the yen to 104.29, pulling away from a near one-month trough of 102.85 plumbed Monday. It also scaled a four-year peak on its Canadian counterpart to C$1.0960.
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