USD/JPY Back Below 108.50 on Global Growth Fears

The safe-haven yen held firm early on Wednesday, having risen broadly as risk appetite waned in the wake of a plunge in German industrial output and after the IMF cut its global economic growth forecasts for a third time this year.

The dollar slid to a three-week low of 107.82 yen, further recoiling from a six-year high of 110.09 set a week ago. The euro dipped to its lowest in a month at 136.56 yen before edging back to 136.96.

Data on Tuesday showed German industrial output fell 4.0 percent in August from July, the biggest decline since the height of the financial crisis.  At the same time, the IMF nudged its global growth forecast down to 3.3 percent for this year from 3.4 percent, warning of weaker growth in core euro zone countries, Japan and big emerging markets such as Brazil.


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