The yen surged on Monday as investors flocked to safe-haven assets after a sharp re-escalation in the U.S.-China trade war, which whacked investor confidence and darkened the global economic outlook.
The yuan also tumbled in offshore trade, weighed by expectations of a deeper slowdown in China as the world’s two-largest economies exchanged barbs over trade.
The Swiss franc and gold, two assets sought during times of heightened risk aversion, shot up in early Asian trade.
The yen surged to 104.46 per dollar, the highest since a flash crash this January, before paring gains to 104.70, up more than 0.5%.
The yen will next target 104.10 per dollar, which is the high it reached during a flash crash on Jan. 3 that roiled financial markets, Daiwa Securities’ Ishizuki said.
In the offshore market, the dollar rose 0.6% to 7.1850 yuan, the highest on record.
The dollar fell 0.2% to 0.9729 Swiss franc.
Source : Reuters