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USD/JPY hovers at 117.50, oil tumbles below $32
The Asian session was calmer on Tuesday as continued worries about China’s economic slowdown suppressed currency traders’ risk appetite. Falls in oil and stock prices kept investors cautious.
The U.S. dollar was stuck in a range, pivoting around 117.50 yen in the last three trading sessions.
The yen advanced 2.8 percent in the week through January 8, the most since August 2013, climbing along with volatility after China’s eight-day run of reductions to the yuan’s reference rate spooked financial markets. The PBOC kept the yuan’s reference rate stable for the third day in a row Tuesday in an effort to reassure investors.
Data out of the Asian session today consisted of Japanese current account and consumer confidence data.
The consumer confidence index printed a reading of 42.7, up from 42.6 in November. It is a small increase but marks the highest reading since November 2013. Economists had forecast a reading of 42.5.
Japan’s current account was in surplus for a 17th consecutive month in November. The current account — a wide measure of trade including financial flows — produced a surplus of Y1.143.5bn ($9.7bn), ahead of forecasts by 28 per cent. However, it was still the smallest surplus since June.
The euro traded in the upper range of $1.08 against the dollar, while cable edged down to $1.4515. The aussie was capped just below US$0.70.
Crude oil fell below $32 for the first time in 12 years on oversupply fears as there were signs that key producer Iran could be allowed to export oil. This comes after the West prepares to lift embargoes after a deal over its nuclear program.
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