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(Seoul=Yonhap Infomax) Sung Jin Kim = The US dollar strengthened for a third consecutive session.
The greenback, initially pressured by news of a decline in US private employment, rebounded intraday as US Treasury yields pared earlier losses.
The Japanese yen, under downward pressure due to economic policies from Prime Minister Sanae Takaichi, fell to its lowest level against the dollar in nearly nine months.
According to Yonhap Infomax (screen number 6411), as of 16:00 on the 18th (US Eastern Time) in the New York foreign exchange market, the dollar-yen rate stood at 155.529 yen, up 0.304 yen (0.196%) from the previous New York close of 155.225 yen.
The dollar-yen pair climbed as high as 155.736 yen in afternoon trading, marking its highest level since early February.
The euro-yen rate rose 0.210 yen (0.117%) to 180.10 yen from 179.89 yen in the previous session. The euro-yen touched 180.31 yen at one point, setting a new all-time high for the second straight day. This means the yen's value against the euro has fallen to its lowest since the euro's launch in 1999.
The euro-dollar rate slipped 0.00080 dollars (0.069%) to 1.15807 dollars from 1.15887 dollars, marking a third straight session of declines.
The dollar index (DXY) rose 0.038 points (0.038%) to 99.588 from 99.550. The index had dipped to 99.396 intraday before reversing higher.
Earlier in the day, employment data provider ADP reported that preliminary US private employment for the four weeks ending on the 1st of this month fell by an average of 2,500 jobs per week. The previous week had seen a decrease of 14,250 jobs per week.
Michael Boutros, Senior Technical Strategist at StoneX, said, "There are views that the labor market may be weaker than the data suggests, and the market is trying to interpret that. The question is whether this can offset the persistent inflation we are witnessing."
The dollar index tracked the rebound in US Treasury yields that began in the latter part of the morning session.
As the dollar strengthened, the euro-dollar briefly reclaimed the 1.16 level before slipping again. The dollar-yen pair, after retreating near the 155 yen mark, quickly rebounded.
Juan Perez, Trading Director at Monex USA, noted, "Japan's new prime minister is more aggressive and aims to increase spending, adding to the uncertainty. As a result, Japan is no longer seen as a safe haven in financial markets. The country has become somewhat more unstable and volatile."
Tensions between Russia and Ukraine escalated. On the day, Ukraine's General Staff announced via Telegram that it had struck military targets inside Russian territory using US-supplied ATACMS tactical ballistic missiles.
The General Staff described this as "a significant development demonstrating Ukraine's firm resolve to defend its sovereignty," adding that "the use of long-range strike capabilities, including systems like ATACMS, will continue."
On the day, the pound-dollar rate fell 0.00082 dollars (0.062%) to 1.31466 dollars from the previous session. The offshore dollar-yuan (CNH) rate rose 0.00120 yuan (0.017%) to 7.1100 yuan.
sjkim@yna.co.kr
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