The yen retreated from the strongest in four weeks against the dollar before the Federal Reserve concludes a two-day policy meeting today.
The yen has been the biggest gainer among the 10-currency Bloomberg Correlation-Weighted Indexes in the past week as tumbling oil added to concern the global economy will falter, boosting demand for havens. The ruble collapsed to a record yesterday even after Russia increased borrowing costs to the most since 1998. A gauge of emerging-market currencies fell to a 12-year low. New Zealand’s kiwi declined after the South Pacific nation’s current-account deficit widened.
“Dollar-yen moves have been volatile,” said Kazuo Shirai, a trader at MUFG Union Bank NA in Los Angeles. “Commodity-related currencies in emerging markets seem to be in a panic state as oil continues to fall. Where we go from here in dollar-yen depends on the Fed meeting.”
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.