Dollar slides in flows-driven market; investors await U.S. debate
NEW YORK (Reuters) - The dollar on Tuesday fell from last week’s two-month highs, weighed down by currency flows in the options market as well as for month end, with investors also capitalizing on recent gains in the greenback ahead of the first debate between two U.S. presidential candidates.
“Today the market is mostly flows-driven, options-related and month-end flows that have pulled the dollar lower,” said Erik Bregar, head of FX strategy at Exchange Bank of Canada in Toronto.
There were FX options-related flows that bet on the downside in the dollar versus the yen as well as the upside on the euro against the Japanese currency, Bregar said. The euro/yen options have pulled euro/dollar hi...