|
 The Japanese currency, often sought in times of market turmoil or
economic uncertainty, fell as low as 110.30 per dollar as shares
fell in Europe and Asia.
U.S. stocks also looked set open lower, according to index futures.
Oil, which fell in recent days on fading prospects of agreement
among producers to curb oversupply, took another hit from data
showing U.S. demand for gasoline declined in January for the first
time in 14 months.
Further muddying the waters for investors, two senior officials of
the U.S. Federal Reserve said the market's views of when the central
bank would raise interest rates may be too "pessimistic".
Just a week ago, Fed Chair Janet Yellen said the Fed would proceed
cautiously in raising rates -- remarks viewed as dovish and which
drove U.S. stocks to 2016 highs.
The dollar fell 0.8 percent against the yen and last traded at
110.37 yen. The euro fell 0.3 percent to $1.1354.
"Clearly risk sentiment is not good and oil prices are declining
this week and ... driving the dollar lower against the yen," said
Yujiro Goto, currency strategist at Nomura in London.
The Australian dollar fell with commodity prices and dropped nearly
1 percent to $0.7533, having risen after the Reserve Bank of
Australia left interest rates unchanged, as widely expected.
In stock markets, the FTSEurofirst 300 share index dropped 1.8
percent. Germany's DAX index slid 2.3 percent after data showed
German industrial orders unexpectedly fell 2.1 percent in February
due to weak foreign demand, especially from euro zone countries.
MSCI's broadest index of Asia-Pacific shares outside Japan was
earlier down 1.7 percent. Japan's Nikkei index fell 2.4 percent to
an eight-week closing low.
Chinese shares bucked the trend, closing up 1.3 to 1.4 percent
as trading resumed after a market holiday.
Oil prices, down from above $100 a barrel since mid-2014 on a global
supply glut to a trough of $27.10 in late January, fell again after
the U.S. Energy Information Administration said on Monday that
gasoline demand fell 0.6 percent in January. Total U.S. oil demand
fell 1 percent compared with January 2015.
[to top of second column] |
Brent crude traded 26 cents lower at $37.43 a barrel, down
from a 2016 high of $42.54 touched in mid-March.
"As long as most speculative money is long-positioned, there is more
room for closing positions and falling prices," said Frank Klumpp,
oil analyst at Stuttgart-based Landesbank Baden-Wuerttemberg.
LOW-RISK
As stock prices tumbled, yields on low-risk government bonds fell.
German 10-year yields, the benchmark for euro zone borrowing costs,
fell as far as 0.08 percent, their lowest in almost a year.
"The data signals weaker export growth, softer demand both within
the euro zone and abroad and thus suggesting that the ECB's
challenge as regards boosting inflation and inflation expectations
is and will remain very much an uphill battle," Rabobank strategist
Matt Cairns said.
U.S. 10-year Treasury yields fell nearly 6 basis points to 1.72
percent, their lowest since March 1.
Gold, another perceived safe haven and a top-performing asset in the
first three months of 2016, rose 1.4 percent, reversing losses of
1.4 percent chalked up in the last two days. It traded at $1,231.40
an ounce.
Copper edged down 0.1 percent to $4,757.50 a ton.
(Additional reporting by Lisa Twaronite in Tokyo, Anirban Nag and
John Geddie in London; Editing by John Stonestreet and Raissa
Kasolowsky)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
