Japanese Yen Soars Amid Market Turmoil Following U.S. Manufacturing Data
The Japanese yen surged on Wednesday as traders sought safety following a significant sell-off in Wall Street. The decline, triggered by weak U.S. manufacturing data, raised fears of a hard landing for the U.S. economy. Riskier currencies like the Australian dollar and sterling struggled amid market volatility.
The safe-haven Japanese yen rallied on Wednesday as traders fled to safety following the most significant sell-off on Wall Street in nearly a month. The downturn was sparked by disappointing U.S. manufacturing data, which heightened fears of a hard landing for the global economic giant.
'Price action across global markets is exhibiting the hallmarks of an unfolding growth scare,' said Kyle Rodda, senior financial market analyst at Capital.com, who pointed out severe swings in FX and commodity markets, notably a nearly 5% overnight drop in crude oil prices.
As of 0047 GMT, the yen had strengthened by about 0.3% to 145.02 per dollar, following a 1% rally overnight against a broadly stronger dollar. This trend is closely tied to U.S. Treasury yields, which fell almost 7 basis points overnight, signaling a rush to the safety of bonds among investors.
(With inputs from agencies.)
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