MW: Dollar gains against most rivals, but yen moves higher
LONDON (MarketWatch) -- The dollar and the Japanese yen gained a little ground on their major rivals Monday, finding support as an uncertain outlook for equities increased the safe-haven appeal of lower-yielding currencies.
"Big swings between risk aversion and risk appetite are still the theme," wrote strategists at UniCredit MIB, in a research note. "Markets are struggling between doubts about the global recovery and fears that a U.S. dollar and Japanese yen rally may not last for a long time."
LONDON (MarketWatch) -- The dollar and the Japanese yen gained a little ground on their major rivals Monday, finding support as an uncertain outlook for equities increased the safe-haven appeal of lower-yielding currencies.
"Big swings between risk aversion and risk appetite are still the theme," wrote strategists at UniCredit MIB, in a research note. "Markets are struggling between doubts about the global recovery and fears that a U.S. dollar and Japanese yen rally may not last for a long time."
The euro (CUR_EURUSD 1.40, +0.00, +0.20%) fetched $1.3990, erasing earlier weakness to gain a little ground from $1.3935 late Friday.
In equities, European shares were mixed after Asian stocks fell to start the week. And the direction in futures pointed to opening losses for Wall Street. See Europe Markets. Read Indications.
Meanwhile, the British pound traded at $1.6077, down from $1.6198.
Analysts said a news report in London's Sunday Times newspaper sparked weakness in sterling while underlining worries about the European banking sector. The newspaper said Lloyds Banking Group (UK:LLOY 62.77, -0.41, -0.65%) could report further losses.
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"There's growing speculation that a move back to last week's lows in the sub-$1.60 territory could now follow," said James Hughes, a strategist at CMC Markets.
Overnight, reports that Japanese Prime Minister Taro Aso will dissolve the lower House of Representatives next week and call an election at the end of next month had little direct impact on currency markets, although analysts said it likely contributed to weakness in Tokyo's stock market as the Nikkei 225 ended down 2.6%.
