NEWS / Foreign Exchange

The USD is significantly weaker across the board

The USD is significantly weaker across the board. The sell off started during Asian time and was encouraged by comments from China saying they would diversify reserves into stronger currencies such as EUR. The Chinese official came back and said he did not mean "buy EUR", but the harm was done.

JPY is stronger both vs. USD and high yielders. Rumours of more losses for European and UK banks pushed stocks lower and encouraged risk aversion in carry trades.