US$ retreats after near 13-year high against yen

London

THE dollar fell from near 13-year highs against the yen on Monday on a media report that the US authorities were uncomfortable with their strong currency, prompting some traders to trim favourable bets on the greenback.

US President Barack Obama was quoted in a Bloomberg report citing an unnamed French official as saying that a strong dollar was a problem. The report came after a group of French reporters met President Francois Hollande on Monday ahead of the second day of the G-7 summit.

Although the White House denied the report, investors are wary given US officials, including from the Federal Reserve, have in the past few months raised concerns about a strong currency impacting growth and exports. "Such a pick-up in verbal intervention would represent at least a temporary threat for a weaker dollar given that it comes in the wake of recent buying and this should be particularly true against currencies such as yen," said Todd Elmer, currency strategist at Cit…