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U.S. session overview


The dollar and the yen are higher Tuesday amid fresh concerns about global growth, with the euro extending its losses against the greenback after U.S. stocks slumped in early trading.

The shifting stance on risk was reflected across markets, with U.S. 10-year Treasury yields dropping below 3% to the lowest level since April 2009 and stocks slumping. The Dow Jones Industrial Average was down about 2.0% in early trading Tuesday.

Growth-sensitive currencies such as the Australian, New Zealand and Canadian dollars fell sharply. The safe-haven yen bested the dollar and just about every other currency Tuesday morning.

In mid-morning trading Tuesday, the euro was at USD1.2163 from USD1.2276 late Monday. It hit an intraday low of USD1.2152 in morning trading after U.S. stocks softened in early trading, its lowest level since June 15.

EUR was at JPY107.71 from JPY109.78, up slightly from JPY107.50, its lowest level since November 2001. It hit an all-time low of CHF1.3211 against the Swiss franc before rebounding modestly to trade at CHF1.3229.

The dollar fell to JPY88.50 from JPY89.41, and was at CHF1.0871 from CHF1.0872 while the pound slipped to USD1.5056 from USD1.5105.

The ICE U.S. Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at a session high of 86.267 from late Monday's 85.701.


The euro was pressured against the yen by portfolio managers and other investors trimming exposure to the common currency before the end of the April-June quarter this week.

EURUSD hit an intraday low at USD1.2151, following US equities down. Investors are worried about global growth as well as possible euro-zone credit crunch ahead of the expiry of an enormous ECB lending facility Thu.

The euro fell earlier to JPY107.80, which is the current low for the downtrend from the July 2008 high of JPY170.02. If the downtrend is extended below the JPY105.74-JPY104.50 weekly support band then the euro would be vulnerable to an eventual test of JPY99.58, If trades are stopped above JPY110.05 look for a move up to JPY113.75, traders said.

Disclosure: no pos.