The Japanese yen advanced for a second day, once again outperforming G-10 peers. Australian and New Zealand dollars climbed after eight straight days of losses, buoyed by a weaker greenback.
The Bloomberg Dollar Spot Index slipped a second day, down ~0.2% in total. It has gained ~0.5% since last Friday, rising for a fifth week for its longest winning streak in more than a year.
US 10-year yield is down 2bps to 4.25% on the day, after failing to breach October highs yesterday. Still, it's up 10bps since Monday open, and is set for a fifth weekly advance for the first time since March.
Profit-taking on short yen positions is still in play, following similar interest in the euro and the pound Thursday, according to a Europe-based trader.
The yen strengthens against all major peers; USD/JPY drops 0.5% to 145.15, trimming its weekly advance to 0.1%.
USD/CNH holds steady, trading around 7.3063; AUD/USD climbs 0.1% to 0.6408 and NZD/USD is up 0.1% to 0.5931; both Aussie and Kiwi fell to a 2023 low earlier this week.
Earlier on Friday, China delivered its strongest ever pushback against a weaker yuan via its daily reference rate for the managed currency. Authorities told state-owned banks to step up intervention, according to people familiar, and the central bank said Thursday said it will resolutely prevent excessive currency moves.
EUR/USD rises less than 0.1% at 1.0877; downside RKOs in demand lately, a Europe-based trader says.
One-week riskies in the euro traded earlier at 37 basis points in favor of puts, the most since early April.
Source : Bloomber
