On Wednesday, the Japanese yen flirted with one-month peaks, reviving from losses following Tuesday’s American presidential debate, and the common currency retreated on worries over the health of the European financial system.
The euro sank to $1.1218 from Monday’s peak of $1.1280 as stock prices in Deutsche Bank, Germany’s largest lender, descended to a record minimum on worries regarding a $14 billion demand from the US Department of Justice.
It also hurt broad risk sentiment, thus assisting to back the yen, often tending soar at a time of economic stress.
The evergreen buck traded at 100.41 yen, having fallen from Tuesday’s peak of 100.99 and holding close to one-month minimum of 100.085 also hit on Tuesday.
A drop below that value and below psychological support at 100, could bless the way for greenback/yen to test support at 99, a minimum marked in the aftermath of Britain’s Brexit vote.
Shinichiro Kadota, chief FX strategist at Barclays told that the greenback looks likely to be backed above 100 for now, but he added that he didn’t see quick revenues.
