The US dollar strengthened Wednesday following its surge overnight on bargain-hunting by currency bulls who lifted out the dollar after its decline due to last week’s weak US nonfarm payrolls.
Against the Japanese yen, the greenback traded at ¥120.325. The currency also ended at $1.0820 per euro.
The dollar leaped on underpinning demand rather than a bunch of factors… but the Fed “is still on track to tighten policy when its peers are stuck in quantitative easing,” said Shinichiro Kadota, Chief Japan Forex Strategist at Barclays.
The currency’s sharp rebound was a proof to its underlying firmness as it surfaced in the absence of US figures and debt yields, which dropped Tuesday.
The material has been provided by InstaForex Company – www.instaforex.com