Forex – Yen gains, pound down after deadly blast at UK concert venue

The yen gained and the pound dipped on Tuesday in Asia after a deadly explosion at a concert venue in Manchester was said to be a terror attack with reports suggesting that the government is mulling rescheduling the June 8 polls for parliament.

USD/JPY changed hands at 111.16, down 0.13%, while GBP/USD fell 0.12% to 1.2983. AUD/USD traded at 0.7493, up 0.20%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.07% to 96.81.

Overnight, the dollar fell against a basket of major currencies on Monday, weighed by surge in the euro, after German Chancellor Angela Merkel said the single currency was “too weak.”

Speaking to students at a secondary school in Berlin, Merkel said that the euro is “too weak”, as a result of European Central Bank accommodative monetary policy.

EUR/USD soared to a six-month high as investors believed that Merkel’s comments would pressure ECB policymakers to consider tapering the central bank’s expansive monetary stimulus package, which includes ultra-low interest rates.

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