Yen steadies, dollar slips as China reaches for stimulus
By Tom Westbrook
SINGAPORE, Sept 30 (Reuters) -A surging yen steadied on Monday as Japan's incoming prime minister signalled monetary policy should remain accommodative, while the dollar slipped on commodity currencies underpinned by investor expectations of a turnaround in China's economy.
Japan's yen had leapt on Friday when Shigeru Ishiba, a former defence minister and erstwhile critic of aggressively easy policy won the leadership of the ruling Liberal Democratic Party, which controls parliament and will vote him into office.
The yen JPY=EBS slipped about 0.4% to 142.75 per dollar after jumping 1.8% on Friday. Ishiba told public broadcaster NHK that from the government's standpoint, policy must remain accommodative as a trend given current economic conditions.
Analysts said that was enough to pause the sharp rise in the yen following his victory and that the likelihood of a snap election in the coming months - something Ishiba hinted at on Sunday - could weigh on the yen at least over the short term.
"An election basically takes the Bank of Japan out of the equation until December...a marginal yen negative," said Ray Attrill, National Australia Bank's head of foreign exchange strategy.
Elsewhere the euro EUR=EBS was stable at $1.1172 and sterling GBP=D3 traded at $1.3381 with markets looking to U.S. jobs data on Friday as the next major data point that could guide the pace of U.S. interest rate cuts.
European inflation data on Tuesday and Chinese data due later on Monday are also keenly awaited.
The Australian and New Zealand dollars traded near the 2024 highs they struck on Friday as rate cuts and expectations of fiscal support in China raised hopes of an improvement in the slowing economy.
The Australian dollar AUD=D3 rose 0.3% to $0.6920, after climbing to a 20-month high of $0.6937 on Friday. The New Zealand dollar NZD=D3 was up 0.3% at $0.6360 after hitting its highest since December on Friday.
Last week the U.S. Federal Reserve's favoured inflation measure showed inflation running at a pretty benign 2.2% for the 12 months to August, sending U.S. yields and the dollar lower.
"The trend over next year or so is for the dollar to go down," said Commonwealth Bank of Australia strategist Joe Capurso.
"Inflation is under control. Interest rates are going down and that's good for the global economic outlook, good for risk taking and good for commodity currencies like the Aussie."
Beijing's raft of stimulus measures drove a rally in China's yuan CNY=CFXS last week, even as interest rates were lowered, as investors piled into Chinese stocks which notched their best week in a decade. The yuan broke the psychological 7-per-dollar mark in offshore trade on Friday and was last at 6.9761 CNH=D3 ahead of the onshore open.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Tom Westbrook.
Editing by Shri Navaratnam
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
