On Friday the dollar extended its losses against the yen in a fluctuating Asia trade, underscoring investors’ wariness over softness in the global economy and markets given the Federal Reserve’s decision
to keep interest rates unchanged.
In a highly-anticipated decision Thursday, the Federal Reserve left short-term interest rates unchanged
after weeks of hot market-churning debate over whether the central bank
would end an era of near-zero rates.
Fed Chairwoman Janet Yellen said
concerns about inflation, China and financial markets contributed to the
Fed’s decision to stand pat.
The selling of the dollar has also been accelerated by a sharp decline in the benchmark Nikkei Stock Average midday, which deepened the risk-averse mood and spurred buying into the perceived safety of the Japanese currency. The Nikkei was last down 1.96% midday.
USD/JPY was last at 119.71, compared with 120.03 late Thursday in New York, tracking the overnight dollar selling that brought the U.S. currency from around 120.90 before the Fed concluded its two-day policy meeting.
The greenback was slightly stronger against the euro, which
declined to $1.1401 from $1.1434 late Thursday, after hitting its
three-week high of $1.1441 overnight.
The shared currency was at
¥135.75 from ¥137.22 earlier.
