U.S. Dollar, Yen Falls As Asian Markets Traded Higher After Fed Minutes

The safe-haven currencies such as the U.S. dollar and the yen weakened against their major counterparts in the Asian session on Thursday, as Asian stock markets traded higher, though gains are modest in most markets, following the positive cues overnight from Wall Street after the release of the latest Federal Reserve minutes. Investors are looking ahead to an OPEC meeting later in the day, which is widely expected to extend output cuts.

The FOMC minutes were consistent with another hike in June, but conditional on recent economic softness proving transitory. Policy makers also discussed scaling back their $4 trillion-plus holdings of mortgage-backed bonds and longer-term U.S. government bonds.

Wednesday, the U.S. dollar had risen against its major rivals, while the yen had fallen.

The U.S. dollar rose rose 0.32 percent against the euro, 0.11 percent against the pound and 0.13 percent against the Swiss franc. The yen fell 0.01 percent against the euro, 0.18 percent against the pound and 0.07 percent against the Swiss franc.

In the Asian trading, the U.S. dollar fell to more than a 5-week low of 1.3394 against the Canadian dollar, from yesterday’s closing value of 1.3404. The greenback is likely to find support around the 1.32 region.

Against the euro, the Swiss franc and the Australian dollar, the greenback dropped to 2-day lows of 1.1245, 0.9717 and 0.7516,from yesterday’s closing quotes of 1.1217, 0.9731 and 0.7503, respectively. If the greenback extends its downtrend, it is likely to find support around 1.14 against the euro, 0.95 against the franc and 0.76 against the aussie.

The greenback edged down to 1.2986 against the pound, from yesterday’s closing value of 1.2976. On the downside, 1.30 is seen as the next support level for the greenback.

The yen fell to a 9-day low of 125.49 against the euro and an 8-day low of 83.88 against the Australian dollar, from yesterday’s closing quotes of 125.04 and 83.65, respectively. If the yen extends its downtrend, it is…

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