FOREX-Dollar ticks higher vs yen as confidence stays intact

Published 26/12/2019, 03:58
© Reuters.  FOREX-Dollar ticks higher vs yen as confidence stays intact
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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Hideyuki Sano

TOKYO, Dec 26 (Reuters) - The dollar edged up slightly

against the yen on Thursday while risk-sensitive currencies held

firm on hopes of easing trade tensions between the United States

and China and a pick up in the global growth.

Against the yen, the dollar was 0.2% higher at 109.53 yen

JPY= and within a striking distance of a six-month high of

109.73 touched earlier this month. The euro barely moved at

$1.10905 EUR= .

The Australian dollar was firm at $0.6927 AUD=D4 , a shade

below its four-month peak of $0.6939 touched earlier this month

while the kiwi traded at $0.6648 NZD=D4 , near its highest

level in five months.

Global currency markets remained in holiday mood following

Christmas Day on Wednesday and with several centres still closed

for Boxing Day on Thursday.

However, traders have taken a positive lead after Washington

and Beijing struck to an interim agreement on trade earlier this

month, which is expected to continue to underpin risk assets.

In currency markets, stronger risk appetite usually

translates to more selling in safe-haven currencies, such as the

yen, against currencies leveraged more to growth, particularly

that in China, such as the Australian dollar.

"While global share prices have been rallying, the currency

market has seen limited reaction so far but I think currencies

will have a catch-up to do," said Koichi Kobayashi, chief

manager of forex at Mitsubishi UFJ Trust Bank.

China says it is in close touch with the United States on a

trade deal signing ceremony, after U.S. President Donald Trump

said on Tuesday that he and Chinese President Xi Jinping will

have a ceremony to sign the recently struck trade deal.

The offshore yuan strengthened slightly to 6.9895 yuan per

dollar CNH= , up about 0.09%.

Elsewhere, sterling traded at $1.2996 GBP=D4 , up slightly

from its levels before Christmas holidays though still way below

its Dec. 13 peak of $1.3516.

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