Wednesday, 08 April 2015 04:55

JPY gained on haven demand

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The USD/JPY touched a four-week low as Asian equity markets fell amid concerns that global economic growth was slowing, boosting demand for the Japanese currency as a safe haven.

Last week, the dollar gained ground against most of the other major currencies amid fears over global growth as the International Monetary Fund cut its forecasts for 2014 and 2015 and warned that global growth may never reach its pre-crisis levels ever again, but the dollar index snapped a 12-week winning streak.

But after the comment of FOMC member Fisher dollar retreated. Fischer said the Fed will delay rate hikes until there is clear evidence that the U.S. economy has "advanced far enough" to make progress on its employment and inflation goals.

According to data from the Commodity Futures Trading Commission (CFTC), hedge funds and other large speculators reduced bearish bets on the yen for the first time in three weeks, with net short positions falling to 112,551 on 7 October from an eight-month high of 120,878 the previous week. Net long dollar bets versus its eight major peers rose to 313,878 contracts, the highest since 2003.

 

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