The Japanese yen surged against the majority of most-traded currencies today as the negative market sentiment drove investors towards safer assets. The yen posted losses versus the Swiss franc, which also profited from its role of a safe haven, though by now the Japanese currency has trimmed its losses.
As for news from Japan itself, the Cabinet Office reported that the leading index slipped to 96.3% in March from 97.1% in February. The reading was within expectations.
But as usual, domestic economic indicators had limited impact on the currency. Being considered a safe haven, the yen thrived due to the reports that China introduced 25% tariffs on $60 billion worth of US goods in response to the similar tariffs from the United States on $200 billion worth of Chinese goods. Some market analysts argue, though, that the yen itself can become vulnerable to the negative sentiment as Japan has substantial trade with China.
USD/JPY dropped from 109.76 to 109.29 as of 17:42 GMT today. EUR/JPY declined from 123.29 to 122.75. CHF/JPY was up from 108.40 to 108.87 intraday but has pulled back to 108.65 by now.
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