The yen held a three-day gain versus the dollar before reports in the U.S. and China that come amid concern the world’s largest economies are slowing.
Demand for Japan and Switzerland’s haven assets was boosted yesterday with prices of commodities set for the worst weekly slide since the start of the year. New Zealand’s dollar climbed to a record on a trade-weighted basis after its central bank raised interest rates and said strength in the currency was due to high prices for the nation’s exports. Australia’s dollar traded near a six-week low versus the kiwi before a report expected to show unemployment held at a decade-high.
“It seems that the yen is one beneficiary of a more nervous world,” said Sean Callow, a Sydney-based currency strategist at Westpac Banking Corp. “We have retail sales in the U.S. and it’s hard to be optimistic there, given that consensus has consistently underestimated the impact of severe weather. Closer to home for dollar-yen there’s still a sense of unease over the China story.”
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