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FOREX-Yen slides to five-week lows as risky bets thrive

Published 10/09/2019, 09:19
Updated 10/09/2019, 09:20
FOREX-Yen slides to five-week lows as risky bets thrive
EUR/USD
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USD/JPY
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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Saikat Chatterjee

LONDON, Sept 10 (Reuters) - The Japanese yen fell to a

five-week low against the U.S. dollar on Tuesday as a rebound in

government bond yields prompted some investors to cut back on

bearish bets on the global economy.

Germany's 30-year bond yield rose into positive territory

for the first time in more than a month. Benchmark U.S. Treasury

yields rose to three-week highs as investors ventured into

riskier assets.

"What we are seeing now is a reversal of some of those

investment flows in the summer," said Lee Hardman, a currency

strategist at MUFG in London.

Against the dollar JPY=EBS , the yen fell to a five-week

low of 107.50 yen, its weakest since early August.

Recent data has lifted some of the gloom over the global

economy. Citi's economic-surprise indices for the United States

turned positive in the past week for the first time since

February. The UK equivalent turned positive for the first time

since June. The G10 aggregate index is on the cusp of flipping

into the black and is at its highest in a year

"Over the past 24 hours there has been a move towards more

risk-friendly, pro-growth currencies," Rodrigo Catril, senior FX

strategist at National Australia Bank in Sydney.

The euro EUR=EBS was flat at $1.104. It reached an

overnight high of $1.1067 after a Reuters report that Germany

may set up public-investment agencies to boost fiscal stimulus

without breaching national spending rules The Swedish crown SEK=D3 was the only notable loser in

early London trading, falling 0.5% versus the dollar and 0.7%

against the euro, after August inflation data came in below

market expectations.

Sterling was steady GBP=D3 as Britain's parliament voted

to block Prime Minister Boris Johnson's bid for an early

election, which pushed him to promise he would secure a Brexit

deal at a European Union summit next month.

Green shoots in global economy https://tmsnrt.rs/2A4eDuu

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