RTRS; Dollar extends losses vs yen as U.S. futures cut gains
NEW YORK (Reuters) - The U.S. dollar extended losses against the yen on Wednesday as U.S. stock futures sharply pared gains as euphoria over coordinated rate cuts fizzled.
The dollar last traded down 1.7 percent to 99.63 yen, moving away from a session high of 101.70 yen.
"Dollar/yen is getting squeezed because it seems the rate cuts seem to be not having the desired effect," said Brian Dolan, chief currency strategist, at Forex.com in Bedminster, New Jersey.
"Global central banks took on the rate cuts because they wanted to unfreeze the credit market, but credit spreads are still widening and what's more, U.S. stock futures are slipping."
U.S. stock index futures trimmed gains as credit worries overshadowed earlier rate cut optimism.
(Reporting by Wanfeng Zhou and Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)
