Investing.com - The U.S. dollar is trading higher against nearly all of its major rivals during Monday’s Asian session as traders fear a request by euro zone finance ministers could spark a run on Cyprus banks.
In Asian trading Monday, EUR/USD plunged 1.28% to 1.2910 as news of a levy on Cyprus bank deposits has sent traders in search of safe-haven assets. On Friday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. The agreement has provoked public anger because of plans to impose a one-time tax on bank deposits.
USD/JPY slid 0.46% to 94.88. That decline comes after USD/JPY slipped 1.39% last week. The long term weakening trend on the yen looked likely to remain intact as investors waited to see what fresh easing steps incoming Bank of Japan Governor Haruhiko Kuroda would take to combat deflation.
Japanese markets are closed for a public holiday for the first three days of this week.
GBP/USD is lower by 0.19% at 1.5083 after the pair settled 1.36% higher last week. USD/CHF is up 0.55% at 0.9442 while USD/CAD is higher by 0.46% at 1.0242 on the back of a bad start to the week for oil prices.
In the week ahead investors will be focusing on Wednesday’s Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the bank’s asset purchase program. Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.
Predictably, the risk-off tenor to today’s session is weighing on the so-called riskier currencies. AUD/USD is down 0.57% at 1.0353 after rising 1.64% last week. On Tuesday, the Reserve Bank of Australia is to publish the minutes of its most recent policy meeting.
NZD/USD is lower by 0.67% at 0.8221 while the U.S. Dollar Index is higher by 0.83% at 83.03.
In Asian trading Monday, EUR/USD plunged 1.28% to 1.2910 as news of a levy on Cyprus bank deposits has sent traders in search of safe-haven assets. On Friday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. The agreement has provoked public anger because of plans to impose a one-time tax on bank deposits.
USD/JPY slid 0.46% to 94.88. That decline comes after USD/JPY slipped 1.39% last week. The long term weakening trend on the yen looked likely to remain intact as investors waited to see what fresh easing steps incoming Bank of Japan Governor Haruhiko Kuroda would take to combat deflation.
Japanese markets are closed for a public holiday for the first three days of this week.
GBP/USD is lower by 0.19% at 1.5083 after the pair settled 1.36% higher last week. USD/CHF is up 0.55% at 0.9442 while USD/CAD is higher by 0.46% at 1.0242 on the back of a bad start to the week for oil prices.
In the week ahead investors will be focusing on Wednesday’s Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the bank’s asset purchase program. Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.
Predictably, the risk-off tenor to today’s session is weighing on the so-called riskier currencies. AUD/USD is down 0.57% at 1.0353 after rising 1.64% last week. On Tuesday, the Reserve Bank of Australia is to publish the minutes of its most recent policy meeting.
NZD/USD is lower by 0.67% at 0.8221 while the U.S. Dollar Index is higher by 0.83% at 83.03.