Yen Higher on Syrian Risk Aversion Flow

The yen held its biggest gains in 2 1/2 months against the dollar and euro as traders sought haven investments amid escalating tension in Syria.

Japan’s currency rose versus all of its 16 major peers yesterday, while the Swiss franc advanced against most of its counterparts. Turkey’s lira and India’s rupee both dropped to record lows as global stocks slumped. The Bloomberg U.S. Dollar Index traded near the least in a week before the release of housing data. The pound was near a three-week low against the euro ahead of a speech by Bank of England Governor Mark Carney.

“The yen and Swiss franc are being bought as news about Syria reduces risk appetite,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “This risk-off environment is likely to continue until the situation becomes clearer.”

The yen slipped 0.1 percent to 97.09 per dollar as of 8:21 a.m. in Tokyo from yesterday, when it rallied 1.5 percent, the most since June 11. It was little changed at 130.02 per euro after gaining 1.3 percent yesterday, the most since June 14.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu