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.