The dollar consolidated during today’s Asian trade session as the yen weakened a bit. Risk sentiment was better as earnings on Wall Street were solid. As risk sentiment improved, money came out of safe haven asset classes like the Japanese yen.
Overnight the main Wall Street equity indices gained better than two percent each. Blue chip plays delivered some stronger than expected earnings results despite rising interest rates and global trade tensions that are escalating, especially between the United States and China.
Economic data out of the United States showed that industrial production was up for a fourth straight month in September. Production was supported by gains in manufacturing and mining output. However, momentum was down in the third quarter (Q3).
The Dollar Index Trades flat as the Yen gives back some Gains
The dollar index, which measures the dollar in a basket of six other Forex majors, was flat this morning. The index was last trading at 95.08.
Looking at the Japanese yen, the benchmark USD/JPY market was up this morning. The dollar gained 0.13 percent. The markets was last trading at 112.40 to the dollar.
The Japanese currency had risen over the last seven of eight trade sessions through Tuesday. It was trading at a one month high at 111.61 as of this past Monday.
The EUR/USD market was also up this morning. The market was last trading at 1.1577. The euro had hit its highest level since October 1 yesterday. That was at 1.1622.