* Weak U.S. outlook sends dollar to month low vs yen
* Commodity currencies down on global growth worries
* EUR/USD gains capped by $1.4700 options barriers
(Updates prices, adds comment, detail, changes byline)
By Steven C. Johnson
NEW YORK, June 8 (Reuters) - The dollar hit a one-month low against the yen on Wednesday while commodity-linked currencies and the euro also slumped for fear that a slowing U.S. economy may put the brakes on global growth.
The yen was a top performer, rising as high as 79.69 per dollar , its strongest since May 5. It also gained against the euro as investors unwound trades that were financed with cheaply borrowed yen.
Investors, already rattled by recent data showing U.S. employers added fewer jobs than expected last month, grew more risk averse after Federal Reserve Chairman Ben Bernanke said late Tuesday the recovery remained fragile. [ID:nN07142566]
"He didn't say anything particularly new but he said it as the market was already getting more dovish on the outlook because of the recent weak economic data," said David Mann, senior strategist at Standard Chartered in New York.
"But there are reasons to be more bullish about the second half of the year, and if incoming data improves U.S. growth expectations, things may start going the other way," he said.
If that doesn't happen and the yen rises further, traders said long yen positions could become dangerous as Japanese authorities may try to talk the currency lower. A strong yen makes it harder for Japan to grow its way out of a deep recession made worse by the damage caused by this year's earthquake and tsunami.
"The thing to watch is if we start to see moves becoming more volatile," Mann said.
The dollar was last down 0.3 percent at 79.79 yen, and traders said losses picked up speed after a series of automatic sell orders were triggered on the greenback's drop below 80 yen. More "stop-loss" barriers were said to be below 79.50.
The euro fell 0.9 percent to 116.58 yen and was off 0.5 percent at $1.4615 , hurt by an unexpected 0.6 percent decline in German industrial output. [ID:nB4E7GN03F] "Given that Germany is the engine for growth in the euro zone the industry output figures add to the steady drip drip of bad news," said Simon Derrick, head of currency research at Bank of New York Mellon.
But analysts still expect the European Central Bank to raise interest rates again this year to counter inflation, and ECB President Jean-Claude Trichet is widely expected to hint at a July rate hike after Thursday's monthly policy meeting.
* Commodity currencies down on global growth worries
* EUR/USD gains capped by $1.4700 options barriers
(Updates prices, adds comment, detail, changes byline)
By Steven C. Johnson
NEW YORK, June 8 (Reuters) - The dollar hit a one-month low against the yen on Wednesday while commodity-linked currencies and the euro also slumped for fear that a slowing U.S. economy may put the brakes on global growth.
The yen was a top performer, rising as high as 79.69 per dollar , its strongest since May 5. It also gained against the euro as investors unwound trades that were financed with cheaply borrowed yen.
Investors, already rattled by recent data showing U.S. employers added fewer jobs than expected last month, grew more risk averse after Federal Reserve Chairman Ben Bernanke said late Tuesday the recovery remained fragile. [ID:nN07142566]
"He didn't say anything particularly new but he said it as the market was already getting more dovish on the outlook because of the recent weak economic data," said David Mann, senior strategist at Standard Chartered in New York.
"But there are reasons to be more bullish about the second half of the year, and if incoming data improves U.S. growth expectations, things may start going the other way," he said.
If that doesn't happen and the yen rises further, traders said long yen positions could become dangerous as Japanese authorities may try to talk the currency lower. A strong yen makes it harder for Japan to grow its way out of a deep recession made worse by the damage caused by this year's earthquake and tsunami.
"The thing to watch is if we start to see moves becoming more volatile," Mann said.
The dollar was last down 0.3 percent at 79.79 yen, and traders said losses picked up speed after a series of automatic sell orders were triggered on the greenback's drop below 80 yen. More "stop-loss" barriers were said to be below 79.50.
The euro fell 0.9 percent to 116.58 yen and was off 0.5 percent at $1.4615 , hurt by an unexpected 0.6 percent decline in German industrial output. [ID:nB4E7GN03F] "Given that Germany is the engine for growth in the euro zone the industry output figures add to the steady drip drip of bad news," said Simon Derrick, head of currency research at Bank of New York Mellon.
But analysts still expect the European Central Bank to raise interest rates again this year to counter inflation, and ECB President Jean-Claude Trichet is widely expected to hint at a July rate hike after Thursday's monthly policy meeting.
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন