TOKYO- Safe-haven currencies were on the backfoot on Tuesday as hopes of an economic turnaround boosted riskier assets like the Aussie and yuan, although worries about a blowout in British public spending kept the pound under pressure.
The dollar has climbed 0.1 percent to 107.70 yen, having touched a three-week high of 107.885 in the previous session, though it was capped by its 100-day moving average around that level.
The safe-haven Swiss franc eased to 0.9508 per dollar and 1.0697 per euro.
The euro stood at $1.1244, having gained a tad against the US currency on Monday.
End-of-quarter corporate repatriation flows appear to be playing a role in latest moves, analysts also said.
“On the whole, the market is cautious,” said Minori Uchida, chief currency strategist at MUFG Bank. “Both on the year and compared with late February levels before the pandemic, the four G10 currencies that have current account surpluses — the yen, Swiss franc, the euro and the Swedish krona — have strengthened against the dollar.”
Sterling traded at $1.2297, after sliding to a one-month low of $1.2252 on Monday on concerns about how Britain’s government will pay for its planned infrastructure program following Prime Minister Boris Johnson’s promise to increase spending. —Reuters