Aussie slips, yen gains as risk sentiment sours

1 min read
FILE PHOTO: Illustration photo of a Japan yen note

By Karen Brettell

NEW YORK – Risk sensitive currencies including the Australian dollar slipped on Thursday and the safe-haven Japanese yen gained as concerns about rising inflation and less loose central bank policy dented risk sentiment.

“We’re seeing a little bit of a risk-off today and I think that’s being driven by concerns we’re getting closer to that Fed tapering announcement,” said Edward Moya, senior market analyst for the Americas at OANDA in New York.

“Earnings season has done nothing but support the argument that inflation is persisting,” Moya said, adding that China’s slowdown and the global energy crisis are also headwinds for risk appetite.

Stocks opened lower as IBM and Tesla fell after their quarterly results, with investors awaiting more reports to see the impact of supply chain disruption and labor shortages on companies. [.N]

The dollar index fell 0.03% to 93.57. It had reached a one-year high of 94.56 last week on mounting bets that the Federal Reserve will need to raise rates sooner than previously expected to quell rising price pressures.

The Australian dollar, which is a proxy for risk appetite, fell 0.33% to $0.7491 after reaching $0.7547 overnight, the highest since July 6.

The New Zealand dollar, which has been boosted since the country on Monday recorded the highest inflation reading in over a decade, fell 0.41% to $0.7171, after rising to $0.7219 overnight, the highest since June 8.

The dollar dipped 0.52% against the safe-haven Japanese yen to 113.73. It had hit a four-year high of 114.67 against the Japanese currency on Wednesday.

Sterling slipped 0.09% to $1.3810 while the euro was down 0.05% at $1.1644.

Bitcoin was last at $65,413, after reaching a record high of $67,017 on Wednesday. Demand for the cryptocurrency has increased after the launch of the first U.S. bitcoin futures exchange-traded fund.

Graphic: World FX rates https://graphics.reuters.com/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html

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Currency bid prices at 9:39AM (1339 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 93.5720 93.6140 -0.03% 3.991% +93.7200 +93.4940

Euro/Dollar $1.1644 $1.1650 -0.05% -4.69% +$1.1667 +$1.1632

Dollar/Yen 113.7250 114.2600 -0.52% +10.05% +114.4100 +113.6700

Euro/Yen 132.40 133.20 -0.60% +4.32% +133.3600 +132.3800

Dollar/Swiss 0.9174 0.9189 -0.16% +3.70% +0.9206 +0.9171

Sterling/Dollar $1.3810 $1.3823 -0.09% +1.08% +$1.3833 +$1.3787

Dollar/Canadian 1.2319 1.2316 +0.05% -3.24% +1.2345 +1.2289

Aussie/Dollar $0.7491 $0.7516 -0.33% -2.62% +$0.7546 +$0.7477

Euro/Swiss 1.0680 1.0706 -0.24% -1.18% +1.0718 +1.0682

Euro/Sterling 0.8429 0.8425 +0.05% -5.68% +0.8443 +0.8423

NZ $0.7171 $0.7201 -0.41% -0.13% +$0.7218 +$0.7164

Dollar/Dollar

Dollar/Norway 8.3310 8.3055 +0.36% -2.93% +8.3560 +8.3200

Euro/Norway 9.7005 9.6795 +0.22% -7.32% +9.7325 +9.6625

Dollar/Sweden 8.5984 8.5796 +0.07% +4.90% +8.6099 +8.5744

Euro/Sweden 10.0125 10.0052 +0.07% -0.63% +10.0209 +9.9995

(Reporting by Karen Brettell, additional reporting by Elizabeth Howcroft in London; Editing by Emelia Sithole-Matarise)

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