FOREX-Yen gains on fears of global economic slowdown
Source: Reuters
By Toni Vorobyova
LONDON, Feb 6 (Reuters) - The yen gained against the dollar and euro on Wednesday as worries about the health of the global economy and a sharp sell off in Asian equity markets made investors less willing to take on risk.
In such an environment, they tend to buy back the Japanese currency, having previously borrowed it as a source of cheap funding for relatively risky carry trade bets in higher-yielding assets.
Worries about the global economic outlook were stoked on Tuesday by a much bigger than expected plunge in the U.S. Institute for Supply Management’s non-manufacturing index, which posted its biggest monthly decline on record. more…
