The US Dollar struck a 4-month trough versus the Japanese Yen as risk-off sentiment grows. Investors seem to be reconsidering earlier thoughts of “Trumpflation trade” which had propelled the US Dollar to a 14-year high and boosted the US equity markets. The Yen, as a safe haven currency, climbed 0.4% yesterday as investors worry over the growing possibility that Trump’s contentious healthcare plan is likely not to even pass the US House of Representatives. That worry impacted Wall Street, as well, which experienced a hard fall yesterday and lost more ground than it had in nearly six months.
As reported at 9:52 am (GMT) in London, the USD/JPY was trading at 111.34 Yen, down 0.38%; the session low was set at 111.15 Yen, while the peak was at 111.7900 Yen. The EUR/USD was down 0.20% to trade at $1.0784 while the GBP/USD was down 0.07% to trade at $1.2464.
Mood Shifting on Trump Promises
Investors may also be worried about the investigation by the FBI into possible collusion between Russia and the Trump campaign, given that Putin had intended to influence the presidential election, a revelation confirmed yesterday by the FBI Director, James Comey, during testimony before a Senatorial panel. One currency strategist said that the risk off mood is the dawning realization that President Trump is failing to deliver on campaign promises, thus the much hyped promise of fiscal stimulus and tax reform seems to be falling to the wayside.