• The dollar stood near a 10-week low against the yen early on Tuesday as investors sought refuge in the safe-haven Japanese currency, while the euro languished on French political woes. The dollar was little changed at 111.730 yen JPY=, in close range of 111.625, its lowest since Nov. 29 plumbed overnight.
The greenback sank 0.7 percent against the yen the previous day on rising risk aversion, with U.S. Treasury yields falling in tandem with Wall Street shares and crude oil prices.
The common currency was steady at $1.0748 EUR= after dropping 0.3 percent overnight. The decline pulled the euro further away from an eight-week high of $1.0829 scaled on Thursday against a broadly weaker dollar.
The U.S. currency has fallen 4.5 percent against the yen so far this year, hurt in large part by U.S. President Donald Trump's protectionist trade rhetoric.
• The euro could fall swiftly below parity with the dollar and France's borrowing costs soar to 2 percent more than their German equivalents if far-right leader Marine Le Pen won the French presidency in May, according to U.S. bank JPMorgan.
"Euro and oil have decent downside on a Le Pen victory: euro could fall about 10 cents to about $0.98 over a few weeks and oil could decline by 5-10 percent," the note said.
• Philadelphia Federal Reserve Bank President Patrick Harker on Monday said he would be open to raising interest rates again at the U.S. central bank's March meeting if growth in jobs and wages continues.
"I still am supportive of three rate hikes this year, of course with a major caveat, depending on how the economy evolves and policy, fiscal policy, evolves," Harker told reporters after a speech on the regulation of fintech firms." I think March should be considered as a potential for another 25-basis point increase."
• Oil fell on Monday as ample U.S. supplies and excess speculative length outweighed OPEC output curbs and rising tensions between the United States and Iran.
Brent futures fell $1.09, or 1.9 percent, to settle at $55.72 a barrel, while U.S. West Texas Intermediate crude lost 82 cents, or 1.5 percent, to close at $53.01. That was the lowest close for both contracts since Jan. 31.
Reference: Reuters
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