(CNBC) The dollar rose against Japanese yen on Thursday as optimism around easing trade tensions between the United States and China sapped demand for the safe-haven currencies, even as the holiday-thinned trading kept large moves in the FX market in check.
“Risk is moderately ‘on’ today on Trump’s comment that a trade agreement is “done,’” said John Doyle, vice president for dealing and trading at Monex Inc in Washington.
“On a usual day, this might just be a blip, but because of the thin conditions, safe-havens like the JPY are a touch weaker and the New Zealand and Australian dollars are up on hopes of a deal,” Doyle said.
With global currency markets in holiday mood following Christmas Day on Wednesday and with several centers still closed on Thursday, overall trading activity was subdued.
“Overall, it is so quiet you can hear crickets. Most of the western world remains closed and liquidity is very thin,” Monex’ Doyle said.
