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FOREX-Safe-haven yen, Swiss franc rally as U.S. stock market falters

Published 06/09/2020, 11:27 PM
Updated 06/09/2020, 11:30 PM
© Reuters.
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* Kiwi dollar falls after touching 4-1/2-month high
* US dollar rises versus commodity currencies
* Japanese yen rises to one-week high
* Swiss franc surges to more than two-month peak
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, June 9 (Reuters) - The safe-haven yen and Swiss franc on Tuesday gained for a second
straight day this week as U.S. stocks stumbled a day after a blistering rally that propelled the
tech-heavy Nasdaq to an all-time high.
The yen rose to one-week highs against the dollar, while the Swiss franc climbed to its highest in
more than two months versus the greenback.
Japanese investors have also sold the dollar as they positioned for the likelihood that the Federal
Reserve will take steps to flatten the Treasury yield curve, which has steepened as rates on the long end
rose. U.S. stocks opened lower as investors cautiously looked ahead to the Fed statement on monetary policy
on Wednesday. .N The Nasdaq later reversed losses.
"Despite the historic rally in the stock market, there's a an enormous amount of risk out there to the
outlook," said Edward Moya, senior market analyst, at OANDA in New York.
"As the economy reopens fully, there's going to be a surge, but I don't think that's going to be long
lasting. There are concerns that risk assets are near their peak and we're probably going to see a little
period of consolidation," he added.
In late morning trading, the dollar fell 0.5% against the yen to 107.84 yen JPY=EBS , after earlier
touching a one-week low of 107.67 yen.
Against the Swiss franc, the dollar dropped 0.8% to 0.9498 franc CHF=EBS , after earlier plunging to
0.9496, the lowest since late March.
The euro recovered early losses to trade up 0.4% to $1.1340 EUR=EBS .
The U.S. dollar index fell 0.3% to 96.314 =USD .
Investors are looking ahead to Wednesday's Fed announcement following a two-day meeting. Speculation
is growing that the U.S. central bank might adopt yield targets on bonds, or some other measures to anchor
long-term yields.
Also on Tuesday, commodity currencies reversed their gains against the U.S. dollar.
The Australian dollar AUD=D3 was last down 0.8% at US$0.6964. Earlier in the Asian trading session,
it rose to an 11-month high of US$0.7043. The New Zealand dollar NZD=D4 fell 0.5% to US$0.6522, off the
four-and-a-half-month high touched earlier.
"All the things that have done exceptionally well since March 23 when the Fed made all financial
markets rise again are in reversal today, and the one currency that has gone down against the dollar since
then was the yen," and now the yen is reversing, said Kit Juckes, macro strategist at Societe Generale.
"We've had two and a half months of rocking risk-on that's taken equities market further than anybody
would have expected and we're having a big co-ordinated joined-up pause ahead of the Fed meeting," Juckes
said.

========================================================
Currency bid prices at 10:59AM (1459 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1353 $1.1292 +0.54% +1.28% +1.1357 +1.1242
Dollar/Yen JPY= 107.7100 108.4200 -0.65% -1.06% +108.5400 +107.6800
Euro/Yen EURJPY= 122.28 122.46 -0.15% +0.27% +122.6000 +121.3500
Dollar/Swiss CHF= 0.9490 0.9576 -0.90% -1.94% +0.9585 +0.9489
Sterling/Dollar GBP= 1.2721 1.2722 -0.01% -4.06% +1.2755 +1.2619
Dollar/Canadian CAD= 1.3426 1.3382 +0.33% +3.39% +1.3487 +1.3359
Australian/Doll AUD= 0.6976 0.7019 -0.61% -0.64% +0.7042 +0.6899
ar
Euro/Swiss EURCHF= 1.0776 1.0816 -0.37% -0.70% +1.0828 +1.0747
Euro/Sterling EURGBP= 0.8922 0.8874 +0.54% +5.54% +0.8938 +0.8865
NZ NZD= 0.6527 0.6557 -0.46% -3.10% +0.6579 +0.6471
Dollar/Dollar
Dollar/Norway NOK= 9.2618 9.2570 +0.05% +5.48% +9.4228 +9.2227
Euro/Norway EURNOK= 10.5150 10.4650 +0.48% +6.88% +10.5960 +10.4300
Dollar/Sweden SEK= 9.1616 9.2041 +0.15% -1.99% +9.2973 +9.1576
Euro/Sweden EURSEK= 10.4055 10.3896 +0.15% -0.61% +10.4580 +10.3839

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Aussie dollar falls after 11-month high https://tmsnrt.rs/3dO42WP
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