Yen gains on risk-off environment, pound down on Brexit concerns

The yen was broadly stronger during Monday’s Asian session due to risk aversion as investors become more concerned as the referendum on the UK’s membership in the EU gets closer.

Sterling fell to the weakest level in eight weeks against the dollar, touching $1.4157, the lowest since April 18.

The pound also weakened against the euro, pushing EURGBP to a one-month high of 79.35 pence. Meanwhile, sterling fell to a more than three-year low against the yen, with GBPJPY reaching 150.07 yen in late Asian session.

The dollar index, a measure of the US currency against a basket of global peers, was up 0.1 per cent at 94.661 on Monday and on track for its first three-day winning streak since May 20.

Gold, which is sensitive to US interest rate expectations, was flat at $1,273.95 an ounce in Asian trade.

The yen was stronger at its best level since May 3, in spite of the stronger dollar. USDJPY fell to 105.80 in late Asian trading.

EURUSD slipped to a low of $1.1231.

Oil markets were weaker, with Brent crude, the global benchmark, down 0.9 per cent at $50.08 a barrel, while West Texas Intermediate, the US marker, was off 1.2 per cent at $48.48.

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