CURRENCIES: China Stock Selloff, Iran Tensions Sen
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Posted On: 01/04/2016 7:45:41 AM
CURRENCIES: China Stock Selloff, Iran Tensions Send Ripples Through Currency Markets
Source: Dow Jones News
By Sara Sjolin, MarketWatch
Safe haven flight to yen and Swiss franc
Renewed fears of a slowdown in China combined with Middle East tensions to spur a flight to safe haven currencies on Monday, with the yen and Swiss franc the main beneficiaries.
The dollar traded mixed against other major currencies, but slipped more than 1% against the yen to trade at Yen118.85, down from Yen120.30 late Thursday in New York.
The ICE Dollar Index , which measures the greenback against a basket of six rival currencies, fell 0.4% to 98.22.
The moves came after Saudi Arabia over the weekend cut ties with Iran (http://www.marketwatch.com/story/saudi-arabia-severs-diplomatic-relations-with-iran-2016-01-03), responding to attacks on its embassy in Tehran by people protesting the execution of prominent Shiite Muslim cleric Nemer al-Nemer.
Investors also grappled with fresh fears of a slowing economy in China. The world's second largest economy kicked off the year with a disappointing reading on manufacturing, fueling a 6.9% selloff (http://www.marketwatch.com/story/asian-markets-slide-on-fears-of-stalling-chinese-economy-2016-01-03) in the Shanghai Composite Index and triggering a new circuit breaker that halted trading for the rest of the day.
"The yen has been the main beneficiary on developments so far, [dollar-yen] bursting below 120 to levels last seen mid-October. But the impact has been felt elsewhere, with higher-yielding and commodity currencies under pressure, with the kiwi , Aussie and Canadian dollar all weaker vs. the U.S. dollar," said Simon Smith, chief economist at FxPro, in a note.
The Swiss franc , another perceived safe haven, also rose, changing hands at $1.0025, up from $0.9980 late Thursday.
The euro rose to $1.0918, up from $1.0861 on Thursday, while the pound climbed to $1.4771 from $1.4736.
(END) Dow Jones Newswires
January 04, 2016 07:24 ET (12:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
By Sara Sjolin, MarketWatch
Safe haven flight to yen and Swiss franc
Renewed fears of a slowdown in China combined with Middle East tensions to spur a flight to safe haven currencies on Monday, with the yen and Swiss franc the main beneficiaries.
The dollar traded mixed against other major currencies, but slipped more than 1% against the yen to trade at Yen118.85, down from Yen120.30 late Thursday in New York.
The ICE Dollar Index , which measures the greenback against a basket of six rival currencies, fell 0.4% to 98.22.
The moves came after Saudi Arabia over the weekend cut ties with Iran (http://www.marketwatch.com/story/saudi-arabia-severs-diplomatic-relations-with-iran-2016-01-03), responding to attacks on its embassy in Tehran by people protesting the execution of prominent Shiite Muslim cleric Nemer al-Nemer.
Investors also grappled with fresh fears of a slowing economy in China. The world's second largest economy kicked off the year with a disappointing reading on manufacturing, fueling a 6.9% selloff (http://www.marketwatch.com/story/asian-markets-slide-on-fears-of-stalling-chinese-economy-2016-01-03) in the Shanghai Composite Index and triggering a new circuit breaker that halted trading for the rest of the day.
"The yen has been the main beneficiary on developments so far, [dollar-yen] bursting below 120 to levels last seen mid-October. But the impact has been felt elsewhere, with higher-yielding and commodity currencies under pressure, with the kiwi , Aussie and Canadian dollar all weaker vs. the U.S. dollar," said Simon Smith, chief economist at FxPro, in a note.
The Swiss franc , another perceived safe haven, also rose, changing hands at $1.0025, up from $0.9980 late Thursday.
The euro rose to $1.0918, up from $1.0861 on Thursday, while the pound climbed to $1.4771 from $1.4736.
(END) Dow Jones Newswires
January 04, 2016 07:24 ET (12:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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