The US dollar heavily plunged against the Japanese Yen and Swiss Franc on the latest disappointing US economic data showing reduced US home prices and consumer confidence.
The US dollar declined to 82.11 versus the Japanese Yen as compared to 82.81 as on late Monday. The pair USD/YEN reached the day’s low of 81.79 which happen to be the lowest since mid November.
Global head of currency Marc Chandler from Brown Brothers Harriman commented, “Japan had encouraging economic data with industrial production and retail sales both beating expectations, though inflation remains subdued.”
The US dollar remained under immense selling pressure versus the Swiss Franc and reached its record low of 0.9432. The pair USD/SWF recovered to 0.9502 but was down by 0.7 percent.
Director of currency research Kathy Lien from GFT commented, “In a world of quantitative easing, sovereign debt risk and slow growth, the stable fiscal finances of the Swiss economy and the low level of unemployment has made it one of the most popular safe havens for global investors.”
However in comparison with other currencies such as Euro and British Pound the greenback stood on solid grounds as euro zone’s debt situation seems to be in more crucial situation.
The dollar index DXY which measures the US dollar’s performance versus it six major rivals touched the day’s low of 79.596 but later on recovered to 80.124 as compared to 80.34 as on Monday’s late North American trading session.
Where Yen and Swiss Franc are being taken as safe haven versus the US dollar; the euro declined against the US dollar to 1.3126 while the British Pound also declined to 0.6 percent to $1.5392 on Tuesday.
Daily forex trading news written by Rehan from DailyForexTrade.com