Yen Compensating Some of Its Losses

The yen recouped some of its losses against the dollar today, Tuesday, after it recovered due to news about developments in a Coronavirus vaccine that sparked optimism for the global economic recovery.

The American company Pfizer for pharmaceutical industries and its German partner BioNTech announced that large-scale clinical trials have revealed that the vaccine they manufacture exceeds 90% effectiveness in preventing Covid-19.

Although a jump in the yield on longer-term US Treasury bonds cost the yen its biggest loss since March overnight, analysts said the currency had trimmed its losses as some dealers reaped dollar profits. The yen rose to 104.97 against the dollar in Asian overnight trade.

The yen was at 76.43 against the Australian dollar, after losing more than 2% overnight.

High-risk currencies such as the Australian dollar settled at 0.7281 against the US dollar, approaching a seven-week high that it touched on Monday, as dealers digest the vaccine news.

The New Zealand dollar recorded 0.6833 against the dollar in its last session, up 0.23% in Asian transactions. The euro rose moderately to 1.1834, after falling more than 0.4% overnight.

The dollar index settled at 92.65 against a basket of currencies, which is slightly more than its lowest level in ten weeks at 92.12, which it hit on Monday.

The pound rose 0.21 to $ 1.3187, nearing its highest level in nine weeks, which it had touched in the previous session.

The Turkish lira fell almost 1% to 8.1150 against the dollar after Turkey appointed former Deputy Prime Minister Lotfi Alwan as the new Minister of Treasury and Finance.