Dollar falls in early trade

28 Mar 2023 , 08:36 AM

The U.S. dollar declined today in early trading.

But, the typically safe haven yen sharply recovered from overnight losses as analysts predicted that Japanese firms would likely bring home their foreign gains as the country’s fiscal year came to a conclusion on Friday.

In addition to the Australian dollar, which is risk-sensitive, the euro and sterling also gained ground.

In Asian trading, the U.S. dollar index, which compares the greenback to six other currencies, including the yen, fell 0.14% to 102.6, adding to Monday’s 0.35% loss.

The dollar fell as low as 0.86% at one stage, to 130.62 yen, and was last down 0.55%, wiping out most of the 0.64% gain from the previous session when it tracked a 15 basis point increase in long-term Treasury yields, the most in six months. In Tuesday’s trade in Tokyo, the 10-year yield barely changed, hovering around 3.52%.

Although risk sentiment fluctuated with the banking news, the dollar index hit a three-month high of 105.88 on March 8 before falling as low as 101.91 last week.

On Tuesday, the euro gained 0.13% to reach $1.08135, while the pound rose 0.24% to $1.2316.

The Australian dollar rose 0.41% to $0.66785. The kiwi dollar increased by 0.37% to $0.6219.

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