The Japanese yen on Thursday marked its biggest advance in almost three months against the U.S. dollar, also achieving gains of at least 0.5 percent against each of its other 15 major rivals, according to Bloomberg.
Akira Amari, economy minister of the Pacific Rim nation, said the strong performance of the yen is likely to continue as equities continue racking up losses. The yen recovered from sharp losses on Wednesday against the world's reserve currency as it marked gains of at least 1.5 percent.
"What's happened in currency markets is all linked to stocks … Dollar/yen had got to a new high and investors were quick to take profit on long dollar/yen positions," currency strategist Niels Christensen with Nordea in Copenhagen told Reuters on Thursday. "The correction has the potential to go further … But there is no risk of a dramatic fall and any move below 100 should be brief."
The yen pushed to its top value in two weeks against the greenback and the common currency of the European Union.
Equities' continued losses are likely to benefit the yen, Reuters reports analysts said.
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