Yen Rises Against Most Major Peers on Global Slowdown

The yen strengthened against most of its 16 major peers as Japanese stocks slid on concern the global economy is slowing, boosting demand for safer assets.

Japan’s currency gained for a third-day against the dollar before U.S. data this week forecast to show manufacturing activity and hiring remained limited. Federal Reserve Chairman Ben S. Bernanke said at an annual forum in Jackson Hole, Wyoming that further bond purchases under quantitative easing shouldn’t be ruled out. Australia’s dollar fell to a five-week low after the nation’s retail sales unexpectedly declined and China’s manufacturing contracted at the fastest pace since March 2009.

“There is safe-haven buying in the markets,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “Investors don’t want to buy the U.S. dollar because of worries about QE3, so that’s why the yen is the safe- haven currency of choice.”

via Bloomberg

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