U.S. Dollar Continues to Lose Ground Following the Rise in Risk Appetite

The dollar is under pressure in Asia, with a number of factors contributing to the decline, including risk appetite for currencies as Asian stock markets rally strongly. Also weighing on the USD was the report in the WSJ suggesting lower demand from China for U.S. treasuries. Traders also cite talk of large USD selling for the London fix for month end behind USD pressure, while some see stop-loss hunting behind the price moves, targeting stops on EUR-USD above 1.4100. For USD-JPY, exporter selling has been behind slight USD-JPY losses from 95.59 down to 95.25 this session. EUR-USD has rallied strongly from 1.4084 at the Tokyo open to highs of 1.4135.