Forex – Dollar Edges Down Amid Fall in U.S. Stocks; Yen Also Slips

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Forex - Dollar Edges Down Amid Fall in U.S. Stocks; Yen Also Slips

Hot news – The dollar edged down on Wednesday while the Japanese yen also slipped as U.S. stocks fell on disappointing corporate results.

The U.S. dollar index that tracks the greenback against a basket of other currencies was down 0.06% at 95.70 by 1:00 AM ET (05:00 GMT).

Overnight, the Dow Jones Industrial Average fell by 125.98 points to close at 25,191.43 while the S&P 500 closed 0.6% lower to 2,740.69. The Nasdaq Composite slipped 0.4% to close at 7,437.54.

The losses came as Caterpillar (NYSE:CAT) closed 7% lower after reporting disappointing earnings results. Higher steel prices and tariffs resulted in increased material costs for the company, according to a statement.

Energy producers also slumped more than 1% as oil prices remained at a five-week low.

Meanwhile, U.S. President Donald Trump told the Wall Street Journal that he is “very unhappy with the Fed” for endangering the U.S. economy by raising rates.

The Fed hiked interest rates three times this year after data showed U.S. economy was healthier than expected. Markets widely expected the central bank to raise rates again before year-end.

The yen also slipped against the dollar after rising earlier in the day as risk-off sentiment boosted the Japanese currency. The USD/JPY pair last traded at 112.62, up 0.2%.

The USD/CNY pair slipped 0.02% as the People’s Bank of China (PBOC) set the yuan reference rate at 6.9357 vs the previous day’s fix of 6.9411.

The AUD/USD pair and the NZD/USD pair rose 0.2% respectively.

Elsewhere, The British Pound remained in focus as British Prime Minister Theresa May prepares to address her Conservative Party lawmakers later today.

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