The yen traded near a one-month low to the dollar on Tuesday as...

The yen traded near a one-month low to the dollar on Tuesday as safe-havens fell out of favour following Wall Street's rally to a record high overnight, with Omicron uncertainty consigned to the background.

The Japanese currency weakened as far as 114.935 yen per dollar JPY=EBS for the first time since Nov. 26, approaching the year-to-date low of 115.525 reached Nov. 24.

The S&P 500 .SPX ended at a record high on Monday after strong U.S. retail sales data eased worries from the highly infectious Omicron coronavirus variant, which has forced thousands of flight cancellations and delays over the holidays and stranded cruise ships.

The U.S. dollar, also viewed as a safe-haven, continued to languish toward the bottom end of its recent trading range versus a basket of peers, even after a hawkish tilt at the Federal Reserve that had policy makers signalling three quarter-point interest rate increases next year.

The dollar index =USD , which measures the currency against six major rivals, was little changed from the previous session at 96.076.

"Markets globally are optimistic" that Omicron won't derail an economic recovery, denting demand for haven currencies, predominantly the yen, said Osamu Takashima, head of G10 FX strategy at Citigroup Global Markets Japan.

The U.S. equities rally "implies that currently investor risk appetite must be very, very strong" despite expectations for faster Fed tightening, he said.

The yen is likely to test its 2021 low in the near term, he predicted.

Sterling GBP=D3 , which often rises when risk sentiment improves, held close to the one-month high of $1.3445 reached overnight.

The Australian dollar AUD=D3 , often considered a liquid proxy of risk appetite, inched up back toward a three-week high at $0.6850, reached Friday.

The euro EUR=EBS consolidated near the top of its range against the dollar this month, little changed from Monday at $1.13255.

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	Currency bid prices at 0123 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.1324		$1.1327	 -0.02%		 -7.31%	  +1.1332	 +1.1325 
 Dollar/Yen		JPY=EBS	114.8600	   114.9100	+0.00%		 +11.26%	 +114.9450   +114.7800 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9173		 0.9178	  -0.08%		 +3.65%	  +0.9176	 +0.9165 
 Sterling/Dollar   GBP=D3	 1.3433		 1.3442	  -0.04%		 -1.65%	  +1.3442	 +1.3434 
 Dollar/Canadian   CAD=D3	 1.2794		 1.2786	  +0.05%		 +0.46%	  +1.2794	 +1.2788 
 Aussie/Dollar	 AUD=D3	 0.7233		 0.7240	  -0.08%		 -5.95%	  +0.7240	 +0.7234 
 NZ				NZD=D3	 0.6810		 0.6815	  +0.12%		 -4.99%	  +0.6817	 +0.6823 
 Dollar/Dollar																				   

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

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World FX rates	https://tmsnrt.rs/2RBWI5E 

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