United States stock futures rise. Thus, the United States dollar is steady, but off the highs. Investors look for safety. Thus, the yen hits a 1-week peak.
Stock market slides spooked investors into selling riskier currencies. Thus, on Wednesday, the United States dollar found support. There are worries concerning the Brexit. Therefore, it pushed the sterling down to a new six-week low.
Against a basket of currencies, the moves have been made for a nearly two percent bounce in the greenback. Previously, it was at a more than two-year low earlier in the month. Also, per greenback, the Japanese yen climbed to a one-week high of 105.83.
Moh Siong Sim works at Bank of Singapore. He is a currency analyst there. Sim said that the tech sell-off had caught the market with surprise. Moreover, it is a bit jittery as to whether there are broader implications.
Dollar and Others
Moreover, Sim added that it might force some position unwinding in other parts of the market. That is probably what they see right now. Since March, the United States dollar has been sliding.
In the Asian session, the United States dollar was mostly steady. It pulled back from early gains on most major currencies. It is because United States equity futures pared losses – with S&P 500 futures flat and Nasdaq 100 futures swinging to trade 0.6% higher in the afternoon.
With the futures trade, the risk-sensitive Antipodean currencies crept from two-week lows. Thus, the New Zealand dollar was steady at $0.6621, and the Australian dollar was ahead 0.2% at $0.7226.
Sterling was unable to shake pressure. It is because fears grow that Britain is ready to undercut its Brexit divorce treaty. It dipped to its lowest since the end of July, by 0.2% to $1.2950.
Also, the pound languished at a six-week low of 137.04 against yen and 90.57 pence against the euro.