The dollar fell versus all Group-of-10 peers as tariff risks remain in the background, while the yen led gains following data pointing to more interest rate increases by the Bank of Japan.
The Bloomberg Dollar Spot Index drops 0.3% to its lowest since Jan. 27; the yield on 10-year Treasuries slips 3bps to 4.48%.
The move reflects unwinds of longs built on tariff risks and meets spillover of yen strength.
USD/JPY drops 1.1% to 152.65, its lowest since Dec. 13; one-week risk reversals are little changed at 140bps, puts over calls
Japan nominal wages rose 4.8% in December from a year earlier, the largest jump since 1997; real wages also grew for a second straight month in December, even as economists expected a drop amid accelerating inflation.
The yen also rallied after Economic Revitalization Minister Ryosei Akazawa said the nation is in an inflationary situation.
GBP/USD up by as much as 0.4% to 1.2529, four-week high; gilts outperformed with focus on positioning ahead of the Bank of England's interest-rate decision.
One-week risk reversals traded earlier at 10 basis points, puts over calls, the least bearish level in nearly a month.
EUR/GBP -0.1% at 0.8312.
USD/CNH down 0.1% at 7.2766; China extended its support for the yuan by setting its daily reference rate for the managed currency at a level stronger than 7.2 per dollar amid escalating trade tensions with the US.
Source : Bloomberg
