Dollar Slips Against Major Currencies as Yen, Euro and Pound Gain

what happened

The U.S. dollar lost ground to most of its major peers during the European session on Tuesday, TradingView reported, citing RTTNews. Versus the yen, the greenback dipped to 158.04 after touching a six-day peak of 158.60 earlier in the session.

Against the euro and the British pound, the dollar hit four-day lows of 1.1235 and 1.3359, compared with early levels of 1.1208 and 1.3309. Versus the Australian dollar it reached a six-day trough at 0.6999, while against the New Zealand and Canadian currencies it approached one-month lows at 0.5689 and 1.4053.

The report flagged possible support near 155.00 for the yen, 1.13 for the euro, 1.35 for the pound, 0.81 for the franc, 0.70 for the Aussie, 0.58 for the kiwi and 1.39 for the loonie should the decline persist.

why it matters

A weaker dollar across a broad basket of currencies matters for FX traders and for assets sensitive to exchange rates. A firmer yen and European currencies change the economics of trade and the cost of imports, while dollar-priced commodities often find firmer support when the greenback softens. Exporters and companies reporting in foreign currency may also see their earnings translated differently when the dollar moves.

market impact

USD/JPY, EUR/USD, GBP/USD: dollar weakness shifts rates in favour of the yen, euro and pound

tags

instruments