LONDON, July 9: Major currencies traded within narrow ranges here on Monday as the market looked ahead to significant economic data later in the week, dealers said. The euro nonetheless struck a record high 168.51 yen in early trading, before pulling back to stand at 168.03 yen, down slightly from 168.10 late on Friday in New York.
Europe’s single currency also slipped to $1.3622, compared with $1.3626 late Friday.
The dollar and euro were stable ahead of US trade data on Thursday, followed by US retail sales and some European inflation figures on Friday.
Until then, investors were expected to bet on good global growth with increasing risky trades.
At Dresdner Kleinwort, Valentin Marinov was among those who believed that perceptions of risk had peaked.
“Absent negative newsflow and risk, appetite could thus commence a sustainable recovery in the near term,” Marinov said.
That would put pressure on the dollar as long as the market continued to assume the US Federal Reserve was going to keep its main interest rates on hold throughout the year, and support the euro and pound at the expense of the yen.
The Japanese yen, traditionally a funding currency for riskier trades in higher-yielding economies, has come under renewed pressure despite a jump in machinery orders, and on views that the Bank of Japan would not raise interest rates this week.—AFP
