Dollar, Yen Rise on Safe Haven Demand

US dollar and Japanese yen are both gaining ground today, rising on safe haven demand. Concerns about the global economy are weighing on commodities and high beta currencies, and that is helping safe haven currencies.

Both the US dollar and the Japanese yen are gaining against their high beta counterparts today. The IMF recently downgraded its forecast for global economic growth, and that has some worried about what’s in store.
Additionally, commodities continue to struggle, and the prospect of continued recession in the eurozone, and a triple-dip recession in the United Kingdom, is causing some difficult. Speculation that the ECB will cut its rate is also lending strength to the yen and dollar.
The dollar and the yen are considered stable currencies, and are used for capital preservation when it appears that the situation is deteriorating. With global markets falling and risk aversion on the rise, low beta currencies like the dollar and yen are in high demand.
At 16:39 GMT EUR/USD is down to 1.3047 from the open at 1.3177. GBP/USD is also lower, down to 1.5254 from the open at 1.5362. EUR/JPY is dropping to 127.4610 from the open at 128.5350. GBP/JPY is also heading lower, falling to 149.0260 from the open at 149.8600. USD/JPY is higher, though, rising to 97.6885 from the open at 97.5285.

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