TOKYO – The safe-haven dollar clawed back some of its overnight losses on Tuesday and the yen also strengthened as US stock futures sank following a profit warning from Snapchat, souring the mood after Wall Street’s strong start to the week.
The dollar index, which measures the currency against six major peers, added 0.1 percent to 102.24, bouncing after Monday’s 0.85 percent tumble took it further from the nearly two-decade peak above 105 marked mid-month.
The greenback, though, slipped against pre-eminent haven currency the yen, dropping 0.18 percent to 127.695 yen.
The euro retreated 0.21 percent to $1.0672, although barely denting the 1.17 percent surge from Monday, when European Central Bank President Christine Lagarde said policymakers were likely to lift the euro area deposit rate out of negative territory by the end of September.
The risk-sensitive Aussie dollar dropped 0.46 percent to $0.70775, and sterling declined 0.22 percent to $1.2558.
US stock futures indicated a 0.81 percent slide for the S&P 500 and 1.41 percent tumble for the Nasdaq at the restart, tarnishing a strong session on Monday that saw the indexes climb 1.86 percent and 1.68 percent respectively. .
Traders pointed to an after-the-bell profit warning from Snapchat owner Snap, which saw the stock tumble 28 percent in extended trading.
The dollar has been falling alongside a decline in Treasury yields from multi-year peaks, with aggressive easing by the Federal Reserve already priced in.
Meanwhile, positive signs for the global economy such as Shanghai’s expected emergence from weeks of crippling COVID-19 lockdowns and US President Joe Biden’s comments this week towards a possible easing of the trade war with China have lifted sentiment at the dollar’s expense.
