The Dow Jones average hit a record high on Tuesday. Such risk-on appetite has traditionally had a negative correlation for safe-haven currencies such as the dollar. But Ian Stannard, FX strategist at Morgan Stanley believes things will be different for the greenback this time, with global currency market dynamics changing quite rapidly.
The yen fell Friday after three days of gains against the U.S. dollar and the euro as a draft statement from the G-20 did not single out Japan trying to weaken its currency.