The yen tumbled to a six-month low against the dollar and a four-year trough versus the euro on Monday as a deal on Iran’s nuclear program eased political anxieties and boosted optimism about economic growth, sending global stocks higher.
The Japanese currency typically falls when share prices rise, with some investors selling the low-yielding yen in search of greater returns with riskier assets such as equities.
The breakthrough accord reached over the weekend in Geneva – between Iran, the United States, China, Russia, France, Britain and Germany – halts Iran’s most sensitive nuclear activities and gives it some relief from crippling sanctions, but does not allow the OPEC member to boost oil sales for six months.
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