The yen remained close to recent highs against the dollar and the
euro on Tuesday one day after a selloff in global equities hit risk
appetite and bolstered demand for the safe haven Japanese currency.
slid 0.22% to 119.16, not far from the two-and-a-half month low of 118.69 set on Monday.
was down 0.46% to 128.78, close to Monday’s eight-month trough of 128.67.
Global equities dropped sharply on Monday after data from China
showing that manufacturing activity contracted for the tenth straight
month in December rekindled fears over a China-led slowdown in global
growth.
Risk sentiment was also hit by escalating tensions between Iran and Saudi Arabia.
Asian shares gave up early gains on Tuesday as concerns over China
continued to weigh, but markets in Europe were higher after the open.
The ,
which measures the greenback’s strength against a trade-weighted basket
of six major currencies, was up 0.26% to 99.19, recovering from
Monday’s lows of 98.12.
The dollar index ended 2015 with gains of almost 9%, bolstered by the
diverging monetary policy stance between the Federal Reserve and other
world central banks, particularly the European Central Bank and the Bank
of Japan.
The euro was close to three-week lows against the dollar, with falling 0.37% to 1.0790.
The single currency remained under pressure after data on Monday
showing that German inflation slowed in December, adding to pressure on
the European Central Bank to step up measures to boost price growth in
the euro area.
The euro zone’s statistical bureau Eurostat was to publish its flash estimate for inflation in the bloc later Tuesday.
BUY GBPINR ABOVE ABOVE 98.30 TGS 98.40-98.50-98.60 STOPLOSS 98.10