The yen held gains against all 16 major peers as haven demand was fed by concern China’s economy is slowing and Ukraine’s political crisis is intensifying.
The yen remained stronger after emerging-market stocks fell, China’s yuan dropped the most in more than five years and Ukraine’s hryvnia tumbled to a record. The Bloomberg Dollar Spot Index headed for its biggest monthly decline since September before Federal Reserve Chair Janet Yellen speaks in the Senate tomorrow, with investors looking for the central bank’s view on the economic impact of winter weather.
“The yen is strengthening amid risk aversion as concern over Ukraine lingers,” said Etsuko Yamashita, the chief economist in New York at Sumitomo Mitsui Banking Corp. “There’ve been continuing issues about China’s economy slowing and some confusion in its financial markets.”
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