The Asian session was once again led by the hand like a child by equity markets, most specifically the CSI 300 Index in China which was down over 4% as of this writing. Most other Asian equity markets were also in the red today. This downward move in equities has prompted traders to seek refuge in the perceived safe haven of the Yen. The Yen crosses all lost ground on the weak equities, most falling from the days open. EUR/JPY started the day at highs of 135.25 and progressively slid to session lows of 134.25. All other crosses followed the same path, GBP/JPY dropped from 155.30 levels to just under 154.00, and CHF/JPY slid from just under 89.10 to the 88.45 level. USD/JPY began the day north of 94.55 and landed near 93.90for the low of the day. Traders tend to seek the safety of the Yen when optimism falters, and today's case of sinking stocks is a prime example of that risk aversion.
The US Dollar made small early gains but as the day wore on the green back was mostly flat against its counterparts. EUR/USD opened near highs of 1.4300 and after a quick trip to 1.4275, the pair looked to exit the day at the opening levels. GBP/USD did the exact same thing, opening close to 1.6420, dropping to 1.6383 and closing out the day back near 1.6420. The news of the reappointing of Federal Reserve Chairman Ben Bernanke by US President Obama seemed to be expected to a degree as the moves in currencies were muted.