USDJPY touches new low not seen since 2014

The dollar slid to a fresh 17-month low versus the yen early on Monday at 107.62. This move will likely be unwelcome by Japan, and increases the chance of a market intervention. Also, Bank of Japan Governor Haruhiko Kuroda said last month further rate cuts were possible.

The upbeat data from China did not affect market sentiment and a risk off mood prevails. This is also helping buoy the safe haven yen. Japanese shares sold off at the open, with the Topix index down 1.4 per cent and narrower Nikkei 225 off by 1.3 per cent.

Data out of China showed that inflation held steady at 2.3 per cent year-on-year in March, according to China’s National Bureau of Statistics, but a tenth of a percentage point below expectations. The pace of wholesale price deflation slowed to -4.3 per cent year-on-year last month, from -4.9 per cent in February.

In commodities, Brent crude, the international oil benchmark, was sitting 0.4 per cent higher on Monday at $42.11 a barrel, while West Texas Intermediate, the US marker, was 0.4 per cent higher at $39.87. Prices jumped by more than 6 per cent on Friday, with sentiment boosted during the latter part of last week on hopes major producers would agree to freeze output at a meeting scheduled for April 17.

Gold was sitting 0.9 per cent higher at a three-week high of $1,251.70 an ounce.

The post USDJPY touches new low not seen since 2014 appeared first on FXTM Blog.

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