Safe haven demand lifts yen as Chinese stocks tumble

The yen was a strong performer today against all its major peers as demand for safe havens grew due to the steepest rout in Chinese equities since 2009, as Chinese brokerages slid after regulators took measures to rein in margin trading.

The yen approached a three-month high against the euro, up 0.4 percent to 135.40 per euro. The yen rose 0.3 percent to 117.15 per dollar at 2:49 p.m. in Tokyo from January 16.

The slide in Shanghai stocks is leading to yen buying. With risk sentiment deteriorating right now, anything obscure will lead to reducing positions.

In other currencies, the Swiss franc fell against all 16 major peers following a surge last week after the Swiss central bank’s decision to abandon the currency’s cap versus the euro. The single currency was little changed amid speculation the ECB will announce additional stimulus measures at a meeting this week.

The euro traded at $1.1559 after falling to $1.1460 on Jan. 16, the weakest since November 2003. It traded at 1.00084 Swiss francs after plunging 17 percent last week to 99.41 centimes.

U.S. financial markets will be closed today for Martin Luther King Day.

The post Safe haven demand lifts yen as Chinese stocks tumble appeared first on Forex Circles.

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