The yen headed for its first weekly advance versus the dollar since August as stock declines and signs of a global slowdown boosted demand for haven assets.
Japan’s currency was set for gains against most of its 16 major peers this week as investors pushed back bets for when the Federal Reserve will raise interest rates. The euro was poised for a third weekly decline against the yen after European Central Bank President Mario Draghi pledged to expand stimulus measures if needed. Australia’s dollar fell for a second day, while the South Korean won gained.
“People have decided that the reason the Fed might be lower for longer on rates is because the global economy is slowing and equities have dumped on that,” said Ray Attrill, the global co-head of currency strategy at National Australia Bank Ltd. in Sydney. “The yen will continue to draw safe-haven support.”
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