Indices in Asia started Monday’s session in the red zone as the market keeps its eye on the upcoming Fed meeting that will be held later on this week. In addition, the poor performance of the U.S. dollar has also had a negative effect.
The Nikkei 225 index in Japan dropped by more than 0.86 percent closing at 19,926.49. Topix index fell about 0.93 percent to 1,614.96. The South Korean benchmark Kospi index went also down by 0.15 percent. The Aussie benchmark S&P/ASX 200 index slipped as much as 0.81 percent at 5,676.4.
The U.S. dollar declined against its major peers on Monday. Investors doubt President Trump’s ability to enact his tax reforms and stimuli plan. In addition, the administration took a hit on the resignation of White house spokesman Sean Spicer. Last but not least, we must bear in mind that it is constantly being undermined by the investigation on the alleged interference of Russia in the U.S. election last year.
The U.S. dollar index, dived to its lowest level since June 2016 at 93.847. IG Securities’ senior forex strategist, Junichi Ishikawa, said the dollar would require a rebound in yields to be stronger again.
The greenback went 0.2 percent lower against the Japanese yen towards 110.965 yen.