Dollar stood firm against the yen but declined against the euro

The dollar climbed against the yen but had trimmed gains against the euro on Wednesday as U.S. equities bounced overnight after suffering from sharp losses earlier in the week.

The greenback maintained its strength against most of its peers as investors were seeking shelter in light of the heavy losses recorded in global equities at the start of the week, which were triggered by the decline in Wall Street. The dollar ended higher versus its Japanese counterpart closing at 109.590 yen after rising 0.5 percent overnight. It went as low as 108.460 in the previous day during the wild swings in global equities. The euro edged up by about 0.05 percent to $1.2383 after having slipped to a two-week low of $1.2314 the day before. The dollar index stood at 89.646 against a basket of six major currencies, closing lower compared to it two-week peak of 90.034 set overnight. The pound advanced to $1.3956 after an overnight low of $1.3838, its weakest since January 19.

Asian stocks showed some recovery as Wall Street bounced

Asian share markets were able find their balance on Wednesday as things became calmer in Wall Street. Asian MSCI index .MIAPJ0000PUS went up 0.5 percent recovering from Tuesday’s 3.5 percent fall. Japan's Nikkei .N225 went up 2.9 percent. It went down 4.73 percent on Tuesday in its steepest fall in 15 months.

U.S. 10-year yields US10YT=RR went down a painful 2.65 percent but a fresh sell-off pulled it back to 2.80 percent - a range very rarely seen. The pullback in bonds was a hint that the appetite for risk was coming back; yet it also may trigger another spasm of selling in stocks.

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