Dollar slips to 4-month low

TOKYO: The dollar fell against the safe-haven yen and Swiss franc on Tuesday, as investors cut their exposure to riskier assets amid the partial US government shutdown and signs of confrontation between the White House and the Federal Reserve, Reuters reported.The dollar fell 0.39 percent to 110.00 yen, its lowest level since late August and is set to fall for an eighth straight session against the Japanese currency, with London and New York shut for Christmas.

The yen also hit a 16-month high against the British pound, trading at 139.90 yen and a four-month high against the euro, at 125.60 yen.

The Swiss franc rose 0.2 percent against the dollar to a 12-week high of 0.98355 to the dollar, extending its 0.9 percent rise on Monday, its biggest daily gain in 11 months.

Gold rose to a six-month high of $1,269.30 per ounce on Monday.

U.S. stocks plunged more than 2 percent while oil prices sank more than 6 percent in a holiday-shortened Monday trade, as developments in Washington added to investors’ concern about a slowdown in the global economy next year.

“People are saying this is a black Christmas,” said a veteran currency trader at a major Japanese bank.

Wall Street’s volatility index, which measures the implied volatility of stocks and is often seen as a fear gauge for investors, jumped to 36.10, the highest since Feb. 6, when it briefly shot up to as high as 50.30.

U.S. President Donald Trump blasted the Federal Reserve on Monday, describing it as the “only problem” for the U.S. economy, only days after reports surfaced that Trump had discussed firing Federal Reserve Chairman Jerome Powell.