市場分析

Yen Gains Ground as Dollar Struggles in Safe-Haven Shift

Amos Simanungkalit · 11 Mar97.1K 閱讀

Image Credit: Reuters

The yen rose to a five-month high on Tuesday, becoming a safe haven for investors amid concerns that U.S. tariffs might slow down economic growth, which has rattled U.S. stocks and the dollar.

The Nasdaq dropped 4% and the S&P 500 fell 2.7%, reflecting concerns over a potential slowdown in U.S. economic growth. The yen surged to 146.625 per dollar before trading at 146.85.

While other currencies saw more moderate moves, the absence of a significant flight to the dollar stood out, as the greenback has been weakening in recent weeks. The Australian dollar fell slightly by 0.4%, trading at $0.6272, while the British pound held steady above $1.2875 and the euro remained just above $1.08.

The Canadian dollar and Mexican peso both weakened modestly, reflecting concerns over U.S. tariffs impacting their economies, with the Canadian dollar steady at C$1.44 per dollar and the peso at 20.34 per dollar. China’s yuan remained stable at 7.26 per dollar in early offshore trade.

Chris Weston, head of research at Pepperstone, noted that the dollar usually rises during periods of high volatility, but when concerns center on the U.S. economy and equity markets, it reduces the dollar's attractiveness.

The downturn in equities followed a Fox News interview with President Trump, where he discussed the uncertainty of his tariff policies and declined to predict if they would trigger a U.S. recession. The dollar index, which had already seen its biggest weekly drop in over two years, remained mostly flat overnight at 103.89, with small gains against the Australian dollar and British pound offset by losses against the yen.

Meanwhile, the euro held onto its gains after German Greens opposed a massive increase in state borrowing for military revamps, despite offering alternative proposals. U.S. bonds rallied, pushing yields lower amid rising global yields. The gap between U.S. and German 10-year bond yields shrank by 33 basis points over the past week, while the U.S.-Japan yield gap narrowed by 17 basis points.