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

Published 09/03/2020, 00:25
Updated 09/03/2020, 00:27
© Reuters.  FOREX-Yen soars as investors stampede to safety; oil-exposed currencies tank

© Reuters. 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. Italy ordered a lockdown of large parts of the north of the

country, including the financial capital Milan. Oil 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.

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.

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