The dollar was firmer against most of its peers early on Tuesday, having posted its biggest one-day rally in over a month against the yen and notching up solid gains on its Australian counterpart.
Traders pointed to a variety of reasons including month-end and quarter-end flows that helped underpin the greenback. The dollar fetched 120.15 yen, well off Monday’s trough of 119.105. The bounce offered hope that its recent slide from a near eight-year peak of 122.04 to 118.33 might have run its course for now.
“The rally looks impressive, and given the general USD bid tone that has re-emerged it would be tempting to think that the only way is up now for USDJPY,” CitiFX analysts wrote in a note to clients.
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