Japanese yen surges to 7-month high as concerns mount over US economy
TradingKeyAug 5, 2024 1:21 PM
- The Japanese yen surged to seven-month highs against the dollar on Monday due to concerns over a potential U.S. economic downturn and larger rate cuts by the Federal Reserve, leading to a global sell-off in stocks and high-yielding currencies.
- Weaker U.S. jobs data, disappointing tech earnings, and worries about the Chinese economy fueled the market turmoil, with the yen gaining 3.4% against the dollar, while the dollar weakened against major currencies.
- Safe-haven demand boosted traditional currencies like the yen and Swiss franc, with FX carry trades rapidly unwinding, while expectations of rate cuts by central banks like the ECB have increased amid the market volatility.
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