Dollar v Yen: Examples of political influence on conversion rates
May 10, 2017
After a risk-appetite dip in Asian trading - which followed Trump's abrupt sacking of FBI Director, Comey - the dollar almost reached 'an 8-week high against the safe haven Yen.
On the other side of the pond, France’s elections see a drop in ‘worries over European political risk’ and a shift towards central bank policy.
By the reasonable morning hour of 8am GMT, the dollar climbed over 114 yen having dropped from 114.325 yen in response to Trump’s most recent scandal.
The euro, has since ‘edged up 0.1% to 124.31 yen per euro - close to the euro’s one-year high on Monday (124.58 yen). Meanwhile, the Swiss franc dropped to 'its lowest in seven months’ - near 1.09575 francs per euro.
"Dollar strength could materialize more, given the more benevolent risk environment, but that can only move the market for so long – you always need new impetus..."
Esther ReicheltCurrency StrategistCommerzbank, Frankfurt
Source:
- Kelly, Jemima. "Dollar close to eight-week high vs yen as risk appetite recovers." Reuters. Thomson Reuters, 10 May 2017. Web. 10 May 2017. http://www.reuters.com/article/global-forex-idUSL8N1IC2I1
Last Updated: Jun 15, 2017