FX Update: The dollar has continued to mostly trade firmer
FX Update: The dollar has continued to mostly trade firmer, this time amid a backdrop of fresh equity market declines on Wall Street and in Asia (which the exception of Chinese markets, which have been playing catch-up following the prolonged Lunar New Year break). This followed minutes of the FOMC meeting, where bullets about upside risk to growth following the tax cuts, grabbed market attention and sent U.S. Treasury yields higher. EUR-USD logged a 10-day low of 1.2259. Cable and AUD-USD saw a similar dynamic, while the dollar also posted gains versus most newly developed and developing world currencies. USD-JPY was an exception in the firmer dollar theme, with the pair seeing a low of 107.15 in Tokyo (just ahead of the fixing) before settling around 107.50. The dip reflected a broader bid in the yen, with similar price action being seen in EUR-JPY and other yen crosses. Japan's vice minister of finance for international affairs (the power position regarding forex intervention decisions), Asakawa, spoke of the yen for a second straight day, this time saying that the BoJ's monetary policy isn't aimed at weakening the yen. Yesterday said "I cannot help but assess that the yen movements as one-sided."