As fears circling the US-China trade conflict escalated, the demand for safe-haven currencies began to surface, resulting in a slight rise for the yen today.
The burgeoning tariff war between China and the US over the last few days has caused major concern for investors. However, as this week comes to a close, the markets now appear to be stabilising.
The yen rose 0.2% to 105.9 yen per dollar. It was on track for its second weekly gain vs the USD and its third weekly gain vs AUD and NZD.
Yukio Ishizuki, a foreign exchange strategist at Daiwa Securities in Tokyo, has said:
In terms of positioning, some speculators are a little too long in the yen, but I think many people feel comfortable remaining short dollar and long yen.
According to data released earlier today, China’s producer price inflation index turned sour for the first time in three years, raising further concerns that it will ‘export deflation’ to the rest of the world, similar to the period of 2012 and 2016.
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