USD/JPY Back to 117 on Safe Haven Demand

The yen gained against all of its major counterparts as stocks in China headed for their biggest drop since 2009, spurring demand for haven assets.

Japan’s currency approached a three-month high against the euro after China suspended three of the nation’s biggest brokerages, including Citic Securities Co. and Haitong Securities Co., from adding margin-finance and securities lending accounts following rule violations. The euro is down this month against major peers after the Swiss National Bank decided to abandon the franc’s cap versus the euro.

“The slide in Shanghai stocks is leading to yen buying,” said Yuji Saito, director of foreign exchange at Credit Agricole SA in Tokyo. “With risk sentiment deteriorating right now, anything obscure will lead to reducing positions.”

Bloomberg

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