On Thursday, the greenback eased, as market participants sought some stability after 24 hours of high drama in financial markets, which saw a massive sell-off in risk assets as well as an equally dramatic turnaround on Republican Donald Trump’s sudden US presidential victory.
With market uncertainty running deep over what a Trump presidency might stand for, traders rapidly latched on to rumor that the new administration is going to usher in higher economic growth as well as inflation, thus sending American bond yields soaring overnight.
The greenback was last down 0.3%, being worth 105.40 in choppy trade, which took it to a session minimum of 104.99 from a peak of 105.95, its loftiest value since July 27.
It had dropped as low as 101.19 yen on Wednesday, as Trump’s win turned to be more apparent and risk assets dived, thus spurring demand for the perceived safe-haven Japanese currency.
The revenue on benchmark 10-year Treasury debt got back in Asian trading to 1.995%, compared to its American close of 2.064% on Wednesday.
