Resurgent Yen and Rising Yuan Put Pressure on U.S. Dollar as Global Growth Outlook Brightens
The U.S. dollar is sliding toward a weekly loss as a resurgent yen and strong yuan attract investors. Markets now await key U.S. inflation data on Friday.
Insights:
Sanae Takaichi's Liberal Democratic Party swept to a landslide victory in the election in Japan 
JP this past Sunday, triggering a significant rally in the Japanese yen. Since the vote, the yen has strengthened by more than 2.6%, a move that has put the United States 
US dollar under considerable pressure. This shift in the FX market has prompted foreign investors to increase their purchases of Japanese assets, including the Invesco CurrencyShares Japanese Yen Trust , while fundamentally altering foreign-exchange valuations and shifting cross-border investor flows.
JP this past Sunday, triggering a significant rally in the Japanese yen. Since the vote, the yen has strengthened by more than 2.6%, a move that has put the United States US dollar under considerable pressure. This shift in the FX market has prompted foreign investors to increase their purchases of Japanese assets, including the Invesco CurrencyShares Japanese Yen Trust , while fundamentally altering foreign-exchange valuations and shifting cross-border investor flows.
