Asia FX Summary: USD Index Hits Four-Month Low, Boosting EUR-USD Gains

The dollar remained under pressure in Asian trading with the USD index falling to a fresh four-month low as the EUR, AUD, NZD, CAD, GBP and CHF extended recent gains against the USD. Net IMM positioning in the aforementioned currencies, along with the JPY showed the first net USD shorts from specs since July last year. Some profit-taking on JPY crosses helped stem the currency gains early in the session with DJIA futures lower and the Nikkei under pressure in morning trading but the Nikkei recovered by the afternoon, helping to keep the USD pressured. Oil was down slightly on profit-taking with copper lower as well. U.S. Treasury yields edged down in response to the morning stock losses. EUR-USD, which closed in NY around 1.3632, rallied as high as 1.3667 in Asia. USD-JPY, which was capped in early trading at 98.83, slipped to lows of 98.17 on USD weakness.