Dollar Up On Yen In Early Asia In Thin Trade With Japan Shut For Holiday
The dollar was quoted higher against the yen in early Asia on Monday in light trade with financial markets in Japan closed for a holiday an an otherwise light regional data day.
USD/JPY changed hands up 0.06% to 108.86, while AUD/USD traded at 0.7816, up 0.01%. GBP/USD fell 0.09% to 1.3811 with British PM Theresa May to give a fresh speech on Brexit plans in the coming weeks.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 90.22. This week, inflation readings from the U.S., UK and Germany will be in the spotlight amid chatter that the world's leading central banks will soon start to step back from easy policies and start raising interest rates.
Last week, the dollar was little changed against a basket of the other major currencies on Friday but recorded its strongest week in almost 15 months after a turbulent week in stock and bond markets around the world.
The dollar was supported by increased safe haven demand from investors amid dramatic moves in the equities and bond markets and found support after Congress and U.S. President Donald Trump approved a federal budget plan that ended an overnight federal shutdown.
U.S. stocks ended higher on Friday, but still suffered their steepest weekly losses in more than two years. Heavy selling pushed the Dow Jones Industrial Average and the S&P 500 into correction territory on Thursday.
Market turbulence has been triggered by speculation that the Federal Reserve may raise interest rates at a faster rate than had been expected amid signs of a pickup in inflation.
The pound had bounced higher on Thursday after the Bank of England warned that interest rates may need to rise sooner than had been expected.