Yen Rebounds as Record JGB Auction Demand Offsets European Political Risk; Euro Rallies 0.2%

The yen snapped a two-day losing streak against the dollar in Asian trading on Tuesday after a 20-year Japanese government bond auction drew bids worth 5.84 times the amount sold, beating last month's 4.01 ratio and lifting the currency 0.2% to 158.15 per dollar. The 20-year JGB yield fell 6 basis points to 3.71%. State Street's Masahiko Loo said sidelined cash is returning and JGBs are emerging as a relative haven from European political and fiscal volatility, particularly France. The euro rallied 0.2% to $1.1234 as French authorities imposed curfews in several cities Monday to curb anti-government protests. French OAT futures rose 0.2% and German bund futures gained 0.1%. Sterling rose 0.4% to $1.3351, the Australian dollar added 0.1% to $0.6989 and the kiwi gained 0.4% to $0.5684. The dollar index fell 0.2% to 101.77. The Canadian dollar strengthened 0.2% to $1.40775 after Alberta voted to remain in Canada. The offshore yuan rose 0.1% to 6.678 after the PBOC held rates. Bitcoin slipped 0.3% to $81,674.25; ether fell 0.2% to $2,393.21.