The US dollar has made progress against both the yen and the euro today (January 7th), though gains were restricted by falls in global stocks.
Asian shares dropped to a new four-month low and disappointing US data held back the greenback, which still rose by 0.1 per cent to about 104.36 yen, reports Reuters.
This represents a recovery from the 0.6 per cent dip on Monday, when the dollar sank as low as 103.91 yen, a level not seen since before Christmas.
Richard Falkenhall, currency strategist at SEB in Stockholm, stated that the trend is for the dollar to rise as the US Federal Reserve cuts back its bond-buying.
"We had some dollar weakness in the run-up to the end of last year, based on liquidity – people bought the euro and sold the dollar. To some extent that's been reversed… Over the next couple of days flows may come back into the dollar," he said.
All eyes will be on the Fed in the coming days and weeks to see what changes new chair Janet Yellen will make after she was confirmed in the role by a US senate vote today.
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