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The Japanese yen, a safe haven, maintained overnight gains against the dollar, worries over slowing global growth, and trade tensions between the US and China dragging investors away from risky badets.
Foreign exchange markets have been swept away in recent weeks as traders attempt to solve a range of issues ranging from Brexit to slowing global growth and the prospects of major central banks.
The slowdown in global demand is one of the factors that should lead the Bank of Japan to reduce its inflation forecasts and stick to its ultra-easy policy when revising its rate later in the day.
The yen, widely regarded as a safe haven in times of market turbulence or economic stress, rose slightly against the dollar, to 109.4%, which allowed the company to record a gain of 0, 5% during the last session.
"Nervousness related to global growth and trade tensions is certainly a defining factor in the markets at the moment," said Michael McCarthy, chief market strategist at CMC Markets.
"The markets have also seen a dramatic change since the end of December, and the recent equity correction may also be due to positioning."
On Monday, the International Monetary Fund (IMF) cut its global growth forecast for 2019 and 2020, citing a larger-than-expected slowdown in China and the eurozone, and said that a failure in resolving tensions could further destabilize the slowdown in the global economy.
China's growth last year was the slowest since 1990, and investors are hoping for a breakthrough in US-Sino-US trade talks, as the tariff dispute between the world's largest economies has already crossed financial markets and demand. World.
A Financial Times report that the United States had rejected China's offer for preparatory trade negotiations dampened the risk sentiment overnight.
The Australian dollar, often considered a barometer of overall risk appetite, fell slightly to $ 0.7120.
The dollar index was also slightly lower at 96.30. Interest rate futures negotiators are betting that the Federal Reserve will maintain its rates in 2019 against growth risks at both the national and global levels.
The rise of the dollar last year is mainly due to the four rate hikes of the Fed. Traders therefore expect a pause in the tightening cycle to limit the US currency.
The euro remained stable at $ 1.1322, while the pound sterling edged up to $ 1.2961 after gaining 0.5% in the previous session. Data released Tuesday showed that the UK labor market remained robust despite an economic slowdown before Brexit. Average weekly earnings, including premiums, rose 3.4% in one year, the largest increase since mid-2008.
The Pound Sterling is close to the peaks reached for the last time in mid-November, suggesting that Britain would avoid a chaotic exit from the European Union.
Since the legislature rejected Prime Minister Theresa May's divorce agreement with the European Union last week during the greatest defeat of modern British history, lawmakers have attempted to chart the way of the crisis, but no option has yet got the support of Parliament.
"The market now completely sidesteps the prospect of a difficult Brexit, although the political risk is still topical and volatility only increases if no clear path is visible for the market, "said Kathy Lien, general manager of monetary strategy at BK Asset Management,
The New Zealand dollar rose 0.2% in Asian trade to $ 0.6764 after data showed that inflation had risen slightly in the fourth quarter and reduced the possibility of a reduction in interest rate.
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