The yen climbed against all of its 16 major counterparts as a selloff in emerging markets boosted demand for haven assets.
Asian shares fell amid a freefall in the currencies of India and Indonesia, and as tensions in Syria escalated. The euro was supported ahead of data forecast to show continued improvement in Germany’s business climate. The Bloomberg U.S. Dollar Index traded near the highest in three weeks as traders stuck to the view that the American economy is strong enough for the Federal Reserve to begin reducing monetary stimulus in September. Australia’s dollar declined as volatility rose.
“Concerns about developing nations are damping market sentiment,” said Marito Ueda, the senior managing director at FX Prime Corp. (8711), a currency-margin company in Tokyo. In such an environment, “investors are reluctant to sell the yen.”
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