AXF: Dollar and yen gain as global recession deepens
Mounting concerns over the depth of the global recession led to safe haven gains in the dollar and yen this morning (March 12th).
A report from the Japanese government showed that the Asian powerhouse's economy contracted at its fastest rate in almost 35 years.
Following this, traders turned to the low-yielding greenback and yen, which rose to $1.2780 and 122.87 against the euro, respectively, in London today.
Yuji Saito, head of the currency group at Societe Generale SA in Tokyo, told Bloomberg: "The Japanese report was certainly bad, with some of the data suggesting the economy will keep deteriorating this quarter.
"Investors are still risk-averse. This has led to buying of the yen."
Meanwhile on the foreign currency exchange markets, the pound fell to 1.3735 versus the greenback and to a two-day low of 1.5892 against the Swiss franc.
