InstaForex

October 11, 2021

USD ‘Steady’, Yen Sinks to Nearly 3 -Year Low

 The US dollar resisted falling lower following a lackluster US NFP jobs report in September.


Although disappointing, investors are still confident that the Federal Reserve (Fed) will announce a reduction in its monthly asset purchases will begin as soon as next month.


This caused the greenback dollar to remain traded higher, especially against the Japanese yen after being supported by a 10 -year higher surge in US treasury yields.


Against the yen, the US dollar strengthened to a nearly three -year high by trading around 112.90 in the European session.



The safe-haven currency also traded weaker against other risky currencies such as the pound and the Aussie dollar, both of which also gained little against the greenback.


While the euro traded little changed against the US dollar which displayed limited movement earlier in the week. For information, US banks are closed today in conjunction with Colombus Day. Therefore, the movement exhibited by the USD today may be somewhat limited.


Meanwhile, the Canadian dollar strengthened to a nearly three -month high, supported by high world crude oil prices and better -than -expected Canadian jobs reports.


The Canadian economy added 157,100 jobs in September compared to expectations for an increase of just 59,000, and far better than the previous reading of 90,200.