The Japanese yen rose in value on Wednesday against the world’s reserve currency and the shared currency of the European Union as Asia’s regional stock index marked its sharpest dip since this past March, according to Bloomberg.
The MSCI Asia Pacific Index fell roughly 1.4 percent after data noted slower growth for China’s services sector. The yen and additional safe-haven assets came into focus amid demand for safe-haven assets.
“The stubbornly strong yen and uncertainty over how much of a bite the [April 1] national consumption tax hike will take out of the economy continue to plague stocks, and this will not end until definitive figures come out allaying the jitters,” senior investment strategist Norihiro Fujito with Mitsubishi UFJ Morgan Stanley Securities told The Wall Street Journal on Wednesday.
The currency of the Pacific Rim nation rose roughly 0.2 percent against the U.S. dollar and the 18-nation monetary unit on Wednesday.
Ongoing strife between Ukraine and Russia also prompted the yen’s rise on Wednesday, The Wall Street Journal reports. Currency markets are likely to be impacted on Wednesday by the monetary policy speech of U.S. Federal Reserve Chair Janet Yellen.
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