The Japanese Yen Leap Up Against The Dollar
The Japanese yen leap up against the Dollar today. Surrounded by geopolitical tensions in the Middle East after the strike on Saudi oil plants damaged the global oil supplies.
The USD/JPY pair drip 0.3% to 107.80 by 12:00 AM ET (04:00 GMT).
The silent strikes attacked an oil processing facility at Abqaiq, which is the world’s largest, and the nearby Khurais oil field on Saturday and drained 5% of global oil supply.
Yemen’s Iran-aligned Houthi group hold the responsibility for the damage, but Mike Pompeo the U.S. Secretary of State pointed straight at Iran as he declared over the weekend that Iran has initiated an “unprecedented attack on the world’s energy supply.”
This news boosts tightness in the Middle East. Meantime the U.S. dollar value decreased due to an interest rate cut by the Federal Reserve on Wednesday.
The U.S Dollar slipped 0.1% to 97.732. Retail sales in the U.S. increased more than expected in August. That came after better-than-expected producer price inflation data on Wednesday and consumer price data on Thursday.
Expectation rose that that central bank may push interest rates further into negative territory and ramp up stimulating policies.
The junior U.S. and Chinese officials will reportedly meet this week ahead of planned talks between senior trade negotiators in October.
The tension between the U.S. and China have softened in recent weeks after Beijing exempted some agricultural products from additional tariffs on U.S. goods last week. Donald Trump delayed a tariff increase on a range of Chinese goods by two weeks.
The USD/CNY pair slide 0.1% to 7.0717.
The AUD/USD pair creep down 0.1% to 0.6872
The NZD/USD pair acquire 0.2% to 0.6381