On Friday the dollar rise, giving an extension to the previous day’s gains as investors retreated from riskier assets, taking the shine off higher-yielding currencies such as the Australian dollar.

Tokyo’s Nikkei

Today Tokyo’s Nikkei average fell 0.5% and after the U.S. S&P 500 index suffered its worst one-day percentage fall in three weeks on Thursday, it has logged its first four-week losing streak in over a year. On Friday U.S. futures SPc1 were lower.

Banks parked funds into safe-haven assets

Investors reduced dollar short positions, and as banks parked funds into safe-haven assets such as U.S. government bonds so the greenback was also supported.

Three-month and six-month bills

On Thursday rates on short-dated U.S. government paper has dropped, with the 2-year bond yield falling to the year’s low of 0.68%. It has been said by the traders that the three-month bills traded near 1 basis point and six-month bills fell to near record lows.

Dollar index

On the day the dollar index was up 0.6% at 75.770 .DXY, which is a position well above a 15-month low of 74.679 that touched on Monday.

Euro dropped down

The euro dropped down 0.6 percent at $1.4823 EUR= by 1205 GMT, still with talk of double-no-touch options at $1.48-1.51 rolling off later on Friday.

Yen gained broadly

Having the euro at 131.91 yen EURJPY=R, the yen gained broadly, breaking below its 200-day moving average of around 132.10 yen.

Dollar was flat against the yen but remained under pressure

The dollar was flat against the yen, but as short-term speculators tested its downside it remained under pressure. It was at 88.99 yen JPY=, so we can see that it is still within reach of a six-week low of 88.63 yen hit on trading platform EBS the day before.

Australian dollar and New Zealand dollar

The Australian dollar AUD=D4 had a drop up to 1.2% at $0.9078 while that of the New Zealand dollar fell down 1.4% to $0.7208, both at two-week lows against the U.S. dollar.

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