Yen Higher on Syrian Risk Aversion Flow

The yen held its biggest gains in 2 1/2 months against the dollar and euro as traders sought haven investments amid escalating tension in Syria.

Japan’s currency rose versus all of its 16 major peers yesterday, while the Swiss franc advanced against most of its counterparts. Turkey’s lira and India’s rupee both dropped to record lows as global stocks slumped. The Bloomberg U.S. Dollar Index traded near the least in a week before the release of housing data. The pound was near a three-week low against the euro ahead of a speech by Bank of England Governor Mark Carney.

“The yen and Swiss franc are being bought as news about Syria reduces risk appetite,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “This risk-off environment is likely to continue until the situation becomes clearer.”

The yen slipped 0.1 percent to 97.09 per dollar as of 8:21 a.m. in Tokyo from yesterday, when it rallied 1.5 percent, the most since June 11. It was little changed at 130.02 per euro after gaining 1.3 percent yesterday, the most since June 14.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.