Early trade in New York: dollar falls against yen

16 Mar, 2016

The dollar fell by more than 1 percent against the yen on Tuesday as weak US retail sales data compounded investors' search for safety as oil tumbled and equity markets globally turned lower. The yen was also boosted by the Bank of Japan's decision to leave interest rates unchanged.
Six weeks after shocking markets by cutting rates into negative territory, Governor Haruhiko Kuroda said the Bank of Japan would take time to look at the impact, but could move again before the cut had worked its way fully into the economy.
US retail sales fell less than expected in February, but a sharp downward revision to January's sales reignited market concerns about the economy's growth prospects.
"The yen was already strengthening, obviously it strengthened quite a bit overnight," said Vassili Serebriakov currency strategist at BNP Paribas in New York. The data "just added to the mood of risk aversion, which is what's helping the yen against the dollar."
The dollar was last down 0.95 percent to 112.72 yen.
Sterling was the day's other big mover, down 1 percent against the euro and dollar after a Daily Telegraph poll showed the campaign in support of Britain leaving the European Union nosing in front in the run-up to a June referendum.
The euro edged up slightly to $1.1110.

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