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Dollar falls to fresh 18-month low against yen
The US dollar fell to a fresh 18-month low against the yen early on Monday as risk sentiment was off in the markets following some disappointing data out of China over the weekend.
Manufacturing PMI data (50.1) out of China missed forecasts in April and came in lower than March’s reading of 50.2, raising doubts about the sustainability of a recent pick-up in the world’s second largest economy.
The yen’s gains led to a drop in Japanese stock markets, with the Tokyo Nikkei falling 3.6 percent.
Australian equities were affected as well, sliding 0.6 percent as China is a major trading partner of Australia. Disappointing results from Westpac Banking Corp failed to help the mood.
AUDUSD traded around the $0.7600 level after falling on Friday. The main risk for the Aussie this week will be Australia’s central bank policy meeting on Tuesday. The RBA is widely expected to keep its cash rate at a record low of 2.0 percent.
USDJPY dropped as low as 106.20, its deepest trough since October 2014 before steadying around 106.51. The greenback ended last week as the worst week against the yen since the 2008 financial crisis. The yen was boosted after the Bank of Japan decided not to expand stimulus measures at its policy meeting last Thursday.
EURUSD edged up slightly to $1.1466.
Brent futures slipped 0.9 percent to $46.96 a barrel in Asian trading, after notching their best monthly gain in seven years, adding 21.5 percent.
U.S. crude futures were down 0.8 percent at $45.57 a barrel, after rising 20 percent last month, their biggest monthly gain in a year.
Spot gold was steady at $1,291.90 an ounce, not far from its peak of $1,296.11 on Friday, its highest level since January 2015.
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