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Dollar slides vs. yen, euro near 4-month lows

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Investing.com -

Investing.com - The dollar fell to a more than one-week low against the yen on Wednesday, as U.S. bond yields edged lower, while the broadly weaker euro was trading within striking distance of four-month lows against the greenback.

USD/JPY was down 0.42% to 101.92, the weakest since June 2.

The dollar slipped as the yield on the U.S. 10-YearTreasury note eased back from one-month highs hit on Tuesday, ticking down to 2.62%.

Demand for the yen continued to be underpinned by diminished expectations for fresh monetary easing by the Bank of Japan.

EUR/USD slid 0.10% to 1.3531, not far from the four-month trough of 1.3502 reached last Thursday.

The euro has come under pressure since the European Central Bank announced monetary easing measures last week, in a bid to stave off the risk of deflation in the euro zone.

The ECB cut all its main rates to record lows on Thursday and for the first time imposed negative deposit rates on commercial lenders.

Elsewhere, the pound was close to session highs against the dollar, with GBP/USD up 0.18% to 1.6787 after data on Wednesday showed that the U.K. unemployment rate fell to 6.6% in the three months to April, the lowest since early 2009.

The claimant count, or number of people receiving jobless benefits fell by 27,400, ahead of forecasts for a for a decline of 25,000 people. April's figure was revised to a drop of 28,400 from 25,100.

The data added to the view that the Bank of England will raise interest rates ahead of other central banks as the economic recovery continues to gather momentum.

Sterling rose to its highest level since December 2012 against the euro, with EUR/GBP down 0.33% to 0.8057.

The dollar was little changed against the Swiss franc, with USD/CHF edging up 0.08% to 0.8998.

The Australian and New Zealand dollars moved higher, with AUD/USD rising 0.19% to 0.9390 and NZD/USD up 0.29% to 0.8552. USD/CAD was down 0.31% to 1.0868.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was little changed at 80.80.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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