Yen declines on year-end U.S. dollar demand

Yen declines on year-end U.S. dollar demand

31 Mar 2020 02:10 PM

The dollar rose against the yen on Tuesday amid fiscal year-end demand by Japanese companies and the Chinese yuan stood firm after a survey showed manufacturing returned to growth in March.

Tuesday is the last trading day of Japan's fiscal year and the end of the quarter for major investors elsewhere, which has fueled some volatility as big currency market players closed their books. The bulk of those positioning changes caused the dollar to strengthen.

Against a basket of six other currencies the dollar rose 0.4%to 99.5. It reached  102.99, its highest in more than three years, earlier this month as a global market selloff fuelled a rush for dollars. Dollar demand has ebbed, but analysts are still forecasting more dollar gains.

The dollar rose 0.52% to 108.38 yen on Tuesday.