The Japanese yen surged Tuesday as Chinese stocks hit its lowest in a week, bolstering demand for safe-haven assets.
The Shanghai Composite Index of stocks slumped around 4.8%. Since the Chinese yuan’s devaluation, global equities have lost over $6 trillion.
The yen settled at ¥120.74 per US dollar.
Currencies still take cues from the yuan fixing and Chinese equities’ performance. Generally speaking, “dollar-yen’s price action is dragging the dollar down,” said Sue Trinh, Head of Asia Foreign Exchange Strategy at Royal Bank of Canada.
The material has been provided by InstaForex Company – www.instaforex.com