Dollar higher vs safe haven yen, as risk appetite increases; Commodity currencies rise
On Wednesday the greenback edged higher versus the yen as the prospect of more economic stimulus in China spurred appetite for risk and dampened demand for the shelter yen.
USD/JPY rose 0.74% to 120.66, off overnight lows of 119.8.
On Wednesday Japan’s Nikkei logged the largest one day percentage gain in seven years after China’s finance ministry said late Tuesday that it would launch fresh measures to stimulate economic growth.
Chinese equities rallied as the announcement alleviated concerns over slowing growth, driving broader gains in regional equity markets and in commodity markets.
The dollar was also higher against the euro, with EUR/USD dipping 0.14% to 1.1186.
The commodity-exposed currencies were also higher, with AUD/USD rising to one-week highs of 0.7070 before consolidating at 0.7042, and NZD/USD rising 0.32% to 0.6363.
The kiwi’s gains were held in check ahead of Thursday’s monetary
policy meeting by the Reserve Bank of New Zealand.
The bank was widely expected to cut rates to 2.75%.
