Due to the risk-on environment, the U.S. Dollar declined, but the Japanese yen was still in demand following the Bank of Japan’s unexpected policy change.
The Dollar Index, which compares the value of the dollar to a basket of six other currencies, dropped 0. 4% to 103.460, trading close to a six-month low.
Due to an increase in risk sentiment following positive data released showing that U.S. consumer confidence reached an eight-month high in December, the dollar experienced weakness.
Following the BOJ’s decision to permit the 10-year bond yield to move in a wider band, USD/JPY dropped 0.5% to 131.88, with the yen remaining close to a four-month high. GBP/USD increased by 0.5% to 1.2144.