BLBG: Yen Weekly Gain Most Since ‘11 as Growth Concern Boosts Demand
The yen rose against all of its major counterparts this week, paring its loss this year, as increased concern of slowing economic growth spurred investor appetite for the currency’s safety.
The Japanese currency fluctuated against the dollar today amid speculation Japan’s central bank will boost stimulus measures. The euro climbed against the dollar after falling for three days, prompting bets the move lower was overdone. Other European currencies, such as Sweden’s krona and Norway’s krone, also rose. The yen also strengthened as Treasury yields, a barometer of haven demand, fell.
“There’s been a lot this week that’s been supportive of the yen,” said Eric Viloria, senior currency strategist for Gain Capital Group LLC in New York. “Treasury yields are lower because of risk aversion, and that’s also helping the yen as a safe haven.”
The yen was little changed at 82.53 per dollar at 8:52 a.m. in New York. It has gained 1.1 percent this week. The euro strengthened 0.4 percent to $1.3247 and added 0.4 percent to 109.37 yen.
The yen, which has fallen by more than 7 percent against each of the 16 major currencies tracked by Bloomberg, pared its loss against the dollar to 7.3 percent.
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
