The yen is generally considered to be a safe-haven currency, and so investors tend to pull into the currency when things get rocky.
However, this is bad news for Japan, as a stronger yen is a big blow to the government’s plan to jump start the economy.
As for the rest of the world, here’s the scoreboard as of 7:34 a.m. ET:
- The British pound has been hit the hardest since the Brexit vote. The pound is down by 3.5% at 1.3206 against the dollar. Separately, George Soros, the billionaire who earned fame by better against the pound in 1992, didn’t bet against the currency this time around.
- The euro is down by 1.0% at 1.1002 against the dollar.
- The Chinese yuan fell to a 6-year low against the dollar after the People’s Bank of China weakened the currency’s reference rate per dollar by 0.9% to 6.6375, the steepest devaluation since last August.
- The Australian dollar is down by 0.7% at .7411 against the dollar following concerns over China’s currency fixing.
- The US dollar index is up 1.0% at 96.39 ahead of several data points. Goods trade balance for May crosses at 8:30 a.m. ET, Markit’s flash services PMI for June at 9:45, and the Dallas Fed manufacturing index for this month at 10:30.