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USD Drops As Safe Havens Rise

The dollar tumbled Monday to its weakest level against the yen since late 2014, as plunging oil prices dragged global stocks lower and helped to support haven assets like the Japanese currency and U.S. Treasurys.

The dollar traded as low as ¥115.20, its weakest level against the dollar since November 2014. By comparison, it traded at ¥116.82 late Friday in New York. The euro traded at $1.1171, compared with $1.1160 Friday. The pound  weakened to $1.4407, from $1.4503 Friday.

The ICE U.S. Dollar index , a measure of the dollar’s strength against a basket of six rival currencies, rose 0.3% to 97.2660.

Oil prices  plunged as worries about oversupply persisted, dragging stocks down with them. Holidays in some economies in Latin America and Asia thinned liquidity and exacerbated liquidity, market strategists said.

Demand for Treasurys   pushed yields to their lowest level in a year. Treasury yields rise when prices fall, and vice versa.

via MarketWatch [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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