Dollar Rises Against Yen, As Global Equities recovery

The dollar strengthened slightly against the yen's safe-haven currencies on Wednesday, supported by gains in European and US stock markets amid a global recovery in risk appetite which also spurred a rally against commodity currencies like the Australian dollar and the loonie.

The dollar gained about 0.4% at 120.37 yen, extending gains from yesterday's lows at 118.88, with a surge in US bond yields which reduce risk aversion and helped strengthen the dollar.

The Australian dollar edged up around 0:56% at $ 0.7056, adding to the 1.4% surge yesterday the currency of the country has brought the kangaroos away from the lowest level in 6 1/2 years at $ 0.6892 hit on Monday.

One analyst at the securities market in Tokyo said that the movement of the equity continues to provide the impact on the dollar and the yen, but they will not be fixated on the one hand on this day. Instead, the Canadian dollar and New Zealand, which is likely to move more because before the decision of the central banks of each country.

The Bank of Canada is expected to keep interest rates unchanged at 0.5% on upbeat data lately after they've been cut twice. While the Reserve Bank of New Zealand is expected to cut interest rates to 2.75% on Thursday.