news/AMZN/2023.01.18/Dollar rises on safe haven bids; yen regains footing.txt

SINGAPORE, Jan 19 (Reuters) - The dollar rose broadly on
Thursday as growth concerns about the U.S. economy drove demand
for the safe-haven greenback, while the yen renewed its ascent
as investors doubled down on bets that the Bank of Japan would
shift away from its yield curve control policy.Weak U.S. data released on Wednesday showed that U.S. retail
sales fell by the most in a year in December and manufacturing
output recorded its biggest drop in nearly two years, stoking
fears that the world's largest economy is headed for a
recession."Those weak data really reinforced market concerns about an
imminent U.S. recession ... (which) really supported the dollar,
and I think that will become a growing narrative in the coming
months," said Carol Kong, a currency strategist at Commonwealth
Bank of Australia (CBA).Sterling fell 0.17% to $1.2327, away from the
previous session's one-month high of $1.2435, while the Aussie
skidded 0.49% to $0.6907, after suffering a 0.64% loss
on Wednesday.The euro shed 0.02% to stand at $1.0792, similarly
some distance from Wednesday's nine-month high of $1.08875, even
as French central bank chief Francois Villeroy de Galhau
maintained a hawkish stance over the European Central Bank's
future rate-hike path.The fresh wave of risk aversion - compounded by news of job
cuts by tech giants Microsoft and Amazon -
also kept the dollar in bid."The effects of the FOMC tightening will just become more
and more visible," Kong said.However, the greenback failed to eke out a gain against the
Japanese yen and was last 0.4% lower at 128.42 yen,
unwinding most of its previous day's rally in the immediate
aftermath of the BOJ's decision to stand pat on its ultra-loose
monetary policy.Defying market expectations, the BOJ kept its interest rate
targets and yield band intact, and instead crafted a new weapon
to prevent long-term rates from rising too much, in a show of
resolve to maintain its YCC policy for the time being.The decision sent the yen plunging some 2% against the
greenback and against other currencies shortly after, alongside
Japanese government bond yields, which tumbled the most in two
decades at one point on Wednesday.The euro was last 0.39% lower at 138.58 yen,
while sterling fell 0.23% to 158.27 yen, as markets
continued to test the resolve of the BOJ's ultra-dovish stance."I think it's really reflecting the fact that market
participants are still speculating a shift in the Bank of
Japan's policy despite their inaction yesterday," said CBA's
Kong. "While there's still high expectations for a policy shift
... I think that will keep the yen pretty elevated in the near
term."Elsewhere, the kiwi fell 0.31% to $0.6425. New
Zealand Prime Minister Jacinda Ardern will not seek re-election
and plans to step down no later than early February, she said in
a televised statement on Thursday.Against a basket of currencies, the U.S. dollar index
rose 0.09% to 102.42.(Reporting by Rae Wee. Editing by Gerry Doyle)