On Tuesday, the major American currency extended its losses after Donald Trump’s national security adviser Michael Flynn quit, with market participants waiting to see whether Fed Chair Janet Yellen provides clues to the likely pace interest rate lifts in her congressional testimony.
The greenback sank 0.3% on the day to stand at 113.43 yen, off Monday’s peak of 114.17, quite above a 10-week minimum of 111.59 yen reached a week ago.
It hit its session minimum of 113.39 yen shortly after news that Flynn resigned under scrutiny over whether he discussed the probability of lifting American sanctions on Russia before Trump took office.
The news weighed on the greenback against the Japanese yen because it’s a hard situation to realize.
Tumbling Japanese equities also put upward pressure on the Japanese yen. The Nikkei stock average lost 0.7%, extending losses in afternoon trading after Toshiba Corp suddenly delayed the release of its quarterly earnings as well as details of a multi-billion dollar writedown to its nuclear business.
