Japanese Yen Leads Major Currencies Higher Against US Dollar on Repatriation

The Yen surged against the US Dollar late into Asian trading amid rumors of large-scale repatriation by Japanese exporters, setting off a wave of selling that weighed on the greenback against most of its major counterparts.

The Euro and the British Pound rose gently higher in Asian trading, adding 0.3% apiece against the US Dollar. We remain short EURUSD at 1.4881 and short GBPUSD at 1.6648.

Currency markets saw quiet trading for much of the overnight session until rumors of large-scale repatriation by Japanese exporters pushed the Yen higher against the US Dollar, reverberating across the majors and weighing on the greenback against most of its top counterparts. The Japanese unit gained as much as 0.9%, leading USDJPY back below the 92.00 level. The broader Dollar Index, a gauge of the buck’s average value against six of the world’s most-traded currencies, declined 0.4% to trade at the lost level in over two weeks.