The Japanese yen surged toward its two-week height on Monday against the world's reserve currency after China released services data noting a slowdown, according to Bloomberg.
The yen climbed against all but one of its 16 major rivals as the first full trade week of 2014 began, spurred higher by speculation that the yen's 18 percent losses last year against the U.S. dollar were overdone. HSBC Holdings Plc and Markit Economics stated a purchasing managers' index released by China noted a drop to 50.9 last month after having registered at 52.5 during November.
"This is very much driven from Asia … The yen has been used as a funding currency and will gain support," head of European currency strategy Ian Stannard with Morgan Stanley told Reuters on Monday. "The euro and sterling have been very well supported into year-end, but now those year-end factors have started to slow down. This suggests they're vulnerable against a yen that is regaining strength."
The currency of Japan surged roughly 0.3 percent against the greenback and about 0.1 percent against the shared currency of the European Union.
The yen rose from recent five-year troughs against the dollar and the euro, according to Reuters.
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