NEW YORK — The yen rallied Monday versus all of its most-traded counterparts after China said it will lower its target for economic growth, boosting demand for the relative safety of Japan’s currency.
NEW YORK — The yen rallied Monday versus all of its most-traded counterparts after China said it will lower its target for economic growth, boosting demand for the relative safety of Japan’s currency.
Australia’s dollar dropped from almost a nine-month high against yen as China lowered its economic growth target to 7.5 percent and loosened its currency controls. The euro gained against most major currencies as Greece said it expected private creditors to accept its debt-swap terms because it constitutes “the best offer.”
“Global growth concerns are a little higher, given the scaling back of growth expectations in China, as well as around Europe,” said Aroop Chatterjee, a currency strategist at Barclays Capital in New York. “In that environment, the dollar and the yen typically see safe haven demand.”
The yen strengthened 0.4 percent to 81.45 per dollar at 3:51 p.m. in New York, after touching 81.87, matching the weakest since May. Japan’s currency rose 0.3 percent to 107.67 per euro. The 17-nation currency rose 0.2 percent to $1.3220.
Xinhua News Agency cited People’s Bank of China Governor Zhou Xiaochuan saying the nation may “appropriately” widen the currency’s trading band Monday. The reference rate was at 6.3069 per dollar and the yuan is allowed to trade 0.5 percent on either side of that. — Bloomberg News