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Dropped to Y108.23 into Tuesday's........>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: Dropped to Y108.23 into Tuesday's 1600BST fix, off an earlier
recovery high of Y108.68, before it recovered to Y108.51. Rate then settled
between Y108.40/50 through to the close. Early risk appetite, as markets reacted
to Trump comments on Sino-US trade talks to resume Wednesday, saw rate edge to
Y108.62 before it met headwind resistance (Asian traders have since suggested
that sell interest above Y108.60 appears to have thinned since). Rate dropped to
Y108.33 after MOF Asakawa said that currency issues discussed at G20. Rate has
extended this corrective pullback to Y108.24, holding just shy of the NY
pullback low of Y108.23 (off Y108.68), a break below Y108.20 to expose stronger
support into Y108.00. Asian traders have suggested demand toward the figure
linked to Y108.00 option expiries through to the end of the week amounting to
around $5bln ($2.96bln roll off at today's NY cut - $$2.71bln USD puts).  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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