TOKYO, Sept 2 — The yen rose today, driven by appetite for safe-haven assets as Washington and Beijing imposed additional tariffs on each other’s exports, adding to the gloom hanging over the global economic outlook.
Gold, which tends to be bought with the yen during times of economic uncertainty, also rose today by the most in almost a week as investors were drawn to so-called risk-off trades.
In offshore trade the Chinese yuan fell toward the lowest since international trading in 2010 in a sign of concern about China’s slowing economy.
Investors will closely monitor China’s stock markets and how the People’s Bank of China fixes onshore yuan trading in Asian morning trade as a broader gauge of risk appetite, an important factor behind market swings in recent weeks.
“The tariffs suggest we are not going to see a very market-friendly open this week,” said Rodrigo Catril, senior foreign exchange strategist at National Australia Bank in Sydney.
“There are a lot of risk events this week from US and Chinese economic data, which should help us see who is hurting more from the trade war, but we don’t think a solution is imminent.”
The yen rose around 0.1 per cent versus to dollar to 106.13 early in Asian trading.
Against the antipodean currencies, the yen rose around 0.2 per cent to 71.42 versus the Australian dollar and advanced around 0.2 per cent to 66.88 per New ealand dollar.
Spot gold rose 0.6 per cent to US$1,529.04 (RM6,430.38) per ounce.
The offshore yuan traded at 7.1780 yuan per dollar, down about 0.23 per cent in early Asian trade. The offshore yuan slumped to a record low of 7.1850 on August 26.
The United States slapped 15 per cent tariffs on a variety of Chinese goods yesterday — including footwear, smart watches and flat-panel televisions — while China imposed new duties on US crude.
Data scheduled for this week include surveys on manufacturing and services in both the United States and China. The US will also release data on its trade balance and non-farm payrolls.
US President Donald Trump said the sides would still meet for talks later this month, but hopes for a resolution to the trade war have diminished.
Trading could be subdued as US financial markets are closed today for the Labour Day holiday.
The dollar index against a basket of six major currencies fell 0.03 per cent on Monday to 98.804.
Risk sentiment could also take a hit due to ongoing protests in Hong Kong over China’s rule of the city.
Thousands of protesters blocked roads and public transport links to Hong Kong airport on Sunday in a bid to draw attention to their fight for democracy.
The euro stood at US$1.0993, up 0.02 per cent so far in Asia, while sterling traded at US$1.2156, down 0.08per cent. — Reuters
