The U.S. dollar and
the Japanese yen fell on Tuesday, as investors sold safe-haven
currencies, and bought gold and U.S. stocks a day after the yellow metal
took a comprehensive defeat.
The ICE dollar index (NYE: DXY), a measure of the dollar against a basket of six major currencies, fell to 81.781 in late trading Tuesday from 82.318 on Monday.
WSJ Dollar Index (WSJ: XX: Buxx), an indicator that uses a rival slightly larger basket, fell to 73.09 from Tuesday's close of 73.56.
Fair value of gold is $ 800 per ounce
Mark Hulbert advises investors do not expect gold prices to flare up again anytime soon. Notes gold fair market value may exceed $ 800 an ounce.
"We have seen that the euro and the yen recover retreat after attracting safe-haven flows during yesterday's defeat of gold," said Kathleen Brooks, research director UK EMEA at Forex.com, in a note to clients .
The dollar "has been collected in the fall" against the yen, he added. "If we can get above 98.70 [yen] - Monday's high - then we could be back on the road to retest 100.00."
While the dollar gained against the yen, which was lower against its major rivals. After climbing as high as 98.15 yen before Tuesday, the dollar (ICAPC: USDJPY) bought 97.57 yen in afternoon trade, compared with 97.09 yen in North American trading Monday. The euro rose 1.7% to 128.62 yen.
The euro (ICAPC: EURUSD) climbed to change hands at $ 1.3185 compared to $ 1.3056 on Monday. The pound (ICAPC: GBPUSD) also recovered, reaching $ 1.5371 from $ 1.5295.
The yen was the top performer among major currencies Monday after Chinese growth quarterly and monthly industrial production data was weaker than expected, generating safe haven flows into the currency.
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