Safe Haven Japanese Yen Sees Biggest One-Day Climb Since 2016

The safe haven currency Japanese yen has soared over 3% higher against the US dollar, to the strongest level seen in over three years over reigning uncertainties surrounding the extent of economic impact of the coronavirus outbreak, even as US Treasury yields and commodity currencies decline. At the time of writing, USD/JPY is trading at around 102.43.

Forex markets are in for a wild trading session to start a new week after Saudi Arabia decided to increase crude production and reduced oil selling prices starting from April. So far, this move has already driven the Australian dollar to its weakest level in 11 years, and driven an over 2% drop in the NZD as well.

The announcement is likely to cause further declines in global stock markets, which could drive additional volatility in currency markets in the coming sessions. Meanwhile, the increased volatility and uncertainty in markets turned more investors towards bonds, sending US Treasury yields to a record low of below 0.5%.

The coronavirus has affected over 100,000 people worldwide so far, while the death toll has crossed 3,300. Even though China has reported a slowdown in the number of infections, cases continue to rise in other countries, increasing the risks of a recession in the global economy.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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