Yen Exchange Rate Slips as Evergrande Contagion Fears Abate

Yen Exchange Rate Slips as Evergrande Contagion Fears Abate

On Monday,  the yen exchange rate slipped as the China Evergrande contagion fears started to ease.

Moreover, the USD/JPY pair dropped 0.14% to $110.57 from its previous rally.

Last week, the concerns about the fate of the highly indebted developer overshadowed the trading market. 

Meanwhile, the Japan corporate services price index, a leading indicator of consumer price inflation, decreased to 1.00% from the previous rate of 1.10%. 

Also, investors eyed the Bank of Japan’s monetary policy meeting later this day. 

Consequently, the yen exchange rate fell as the benchmark US Treasury yields touched 1.44%, the highest level since July 2.

Furthermore, the yields climbed as market participants anticipated tighter Federal Reserve’s monetary policy.

Last Wednesday, the Fed announced that it would likely cut its monthly bond purchases in November.

Meanwhile, the US dollar index, which tracks the greenback against its six rival currencies, fell 0.11% to 93.23.

Then, the GBP/USD pair shed 0.07% to $1.37 as the USD/CAD pair declined 0.20% to $1.27.

On the other hand, the USD/CHF pair climbed 0.15% to $0.93 as the AUD/USD pair increased 0.36% to $0.73.

In addition, the AUD/JPY pair inched up 0.22% to $80.53 as the NZD/USD pair improved 0.14% to $0.70.

The positive risk sentiment turned the yen exchange rate bearish, causing a drop in most Asian currencies.

Subsequently, the USD/SGD pair plunged 0.13% to $1.35 as the USD/HKD pair inched down 0.02% to $7.78.

Elsewhere, the USD/KRW pair skidded 0.41% to $1,174.82 as the USD/CNY pair tumbled 0.14% to $6.46.

Euro to Dollar Exchange Rate Up as Yen Slipped

Meanwhile, the euro to dollar exchange rate modestly climbed as the yen exchange rate slipped. 

Moreover, the EUR/USD pair hiked 0.09% to $1.17, following its increase of 0.43% last Friday. 

Then, the yen exchange rate to euro stumbled 0.07% to $129.61.

Consequently, other currencies against the euro were mixed.

The Swiss franc surged 0.21% to $1.09 as the Pound sterling rose 0.22% to $0.86. 

The Australian dollar edged down 0.26% to $1.61 as the New Zealand dollar lowered 0.04% to $1.67.

Furthermore, most European currencies plummeted on Monday trading.

For instance, the Norwegian krone decreased 0.42% to $8.86 as the Swedish krona edged down 0.19% to $8.63.