December 19, 2016 / 6:18 PM / 7 months ago

FOREX-Yen jumps as Russian ambassador to Turkey dies in attack

4 Min Read

(Updates market action)
    By Richard Leong
    NEW YORK, Dec 19 (Reuters) - The yen jumped on Monday on
safe-haven bids after the Russian ambassador to Turkey was shot
to death in the Turkish capital, adding to buying of the
Japanese currency to book profits on dollar's recent gains.
    It was not immediately clear who attacked Andrei Karlov at
an art gallery in Ankara. Islamic State militants have been
active in Turkey and carried out several bomb attacks there.
 
    Currency traders typically move into the yen from the dollar
and riskier currencies in times of political uncertainty, while
investors reduce holdings of stocks and commodities.
    "This headline is weighing on risk appetite," said Omer
Esiner, chief market analyst at Commonwealth Foreign Exchange
Inc in Washington.
    The yen was up 1 percent against the dollar at 116.75 yen
 after hitting 118.66 yen on Dec. 15, which was its
weakest since Feb. 2, according to Reuters data.   
    The Japanese currency was 1.1 percent higher against the
euro at 121.88 yen.
    The Turkish lira shed 0.8 percent at 3.5338 liras per
dollar. 
    The Russian ruble reversed its losses tied to the
Ankara attack and was last up 0.2 percent at 61.897 rubles to
the dollar.
    Before Monday's attack in Ankara, traders were selling the 
dollar against the yen on lower U.S. Treasury yields and data
that showed Japan's export performance improved strongly in
November. 
    The greenback has rallied since the U.S. election on Nov. 8,
underpinned by expectations of tax cuts, federal spending on
infrastructure and looser regulations from President-elect
Donald Trump.
    The Federal Reserve's hint of a possibly faster pace of
interest rate increases led to the dollar's latest advance.
    The dollar index, which measures the greenback
against the euro, yen and four other currencies, was down 0.14
percent at 102.81. On Dec. 15, it reached 103.56, its highest
since December 2002.
    The benchmark 10-year Treasury yield was six
basis points lower at 2.536 percent. 
    Traders will scrutinize a speech from Fed Chair Janet Yellen
at 1:30 p.m. (1830 GMT) for any hints that markets had
interpreted last week's central bank meeting, where policymakers
signaled they could increase interest rates three times in 2017,
as more hawkish than had been intended. 
========================================================
    Currency bid prices at 12:48PM (1748 GMT)
 Description      Last           U.S. Close  Pct Change
                                  Previous   
                                  Session    
 Euro/Dollar      $1.0441        $1.0447     -0.06%
 Dollar/Yen       116.7300       117.9800    -1.06%
 Euro/Yen         121.89         123.32      -1.16%
 Dollar/Swiss     1.0228         1.0254      -0.25%
 Sterling/Dollar  1.2409         1.2487      -0.62%
 Dollar/Canadian  1.3394         1.3331      +0.47%
 Australian/Doll  0.7254         0.7304      -0.68%
 ar                                          
 Euro/Swiss       1.0682         1.0723      -0.38%
 Euro/Sterling    0.8412         0.8371      +0.49%
 NZ               0.6940         0.6957      -0.24%
 Dollar/Dollar                               
 Dollar/Norway    8.6614         8.6635      -0.02%
 Euro/Norway      9.0463         9.0622      -0.18%
 Dollar/Sweden    9.3400         9.3563      -0.18%
 Euro/Sweden      9.7521         9.7695      -0.18%
         

    
 (Additional reporting by Jemima Kelly in London and Tokyo
markets team; Editing by Chizu Nomiyama and David Gregorio)

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