Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

FOREX-Yen soars as investors stampede to safety; oil-exposed currencies tank

Published 09/03/2020, 10:25 am
Updated 09/03/2020, 10:28 am
FOREX-Yen soars as investors stampede to safety; oil-exposed currencies tank

* Yen soars to three-year high, breaks 104/dollar

* Euro jumps 1% as U.S. Treasury futures point to tumbling yields

* Oil-exposed currencies plunge

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

SINGAPORE, March 9 (Reuters) - The Japanese yen leapt 1.6% to a more than three-year high on Monday as the widening reach of the coronavirus sent investors scrambling for safety, while oil-exposed currencies plunged after Saudi Arabia slashed its selling price.

"It's going to be ugly," said Michael McCarthy, chief markets' strategist at CMC Markets in Sydney. "Best of luck."

In early trade, the yen broke JPY= through 104 per dollar and kept rising as high as 103.52 per dollar.

The Japanese currency is regarded as a safe haven by virtue of the country's status as the world's biggest creditor.

While the yen soared, the dollar dived against the euro as trade in U.S. Treasury futures pointed to 10-year yields crumbling below 0.5% TYc1 - effectively removing one of the dollar's greatest attractions.

The euro EUR= last stood at an 8-month high of $1.1380.

The number of people infected with the coronavirus topped 107,000 across the world as the outbreak reached more countries and caused more economic disruption. ordered a lockdown of large parts of the north of the country, including the financial capital Milan. prices collapsed, dropping by more than 20% after Saudi Arabia, the world's top exporter, vowed to raise its production significantly after the collapse of OPEC's supply cut agreement with Russia. O/R

That hammered oil exporters' currencies.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The Mexican peso MXN= dropped as far as 6% against the dollar. The Canadian dollar CAD=D3 fell more than 1% to a 14-month low.

The Norwegian krone NOK=D3 shed 3% to hit a record trough and the Russian rouble RUB= plunged by 4% to its lowest in nearly four years.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.