USD/JPY back to 119.50 on Safety Demand

The yen gained the most versus the dollar in 18 months as investors sought safety with China tightening lending rules and political turmoil increasing in Greece.

Japan’s currency rose versus all but one of its 31 major peers. The ruble fell even amid speculation President Vladimir Putin will impose capital controls to stem its 39 percent plunge this year. Brazil’s real climbed from a three-week low as the central-bank president didn’t rule out extending an intervention program supporting the currency. The greenback slipped from the strongest level in two years versus the euro. Colombia’s peso tumbled.

“The day started with big risk-off sentiment, although we’ve pared some of the losses,” said Fabian Eliasson, who works in foreign-exchange sales at Mizuho Financial Group Inc. in New York. “The selloff was initiated by China and then Greece in the middle of this.”

Bloomberg

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