FX Update: The dollar has traded softer
FX Update: The dollar has traded softer into the run-in of the London interbank open. USD-JPY first extended to a nine-and-a-half-month high of 114.82, which was seen during the early Tokyo session, before correcting to the 114.00 area. Dollar gains were driven by a rising U.S. yield advantage compared to Japanese and other global peers. Yen crosses also logged fresh trend highs, reflective of broader yen underperformance amid the generally firmer dollar environment. EUR-JPY, for instance, forayed further into five-month territory, and AUD-JPY into seven-month terrain. EUR-USD lifted back above 1.0600 as the buck came off the boil in Asian trade, leaving yesterday's one-week low at 1.0552. USD-CAD lifted to the upper 1.33s after logging a three-week low at 1.3356 yesterday, seen as the Loonie rallied amid the 10%-odd surge in oil prices. High crude prices would, if sustained, be a boon to Canada's terms of trade.