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Forex

Dollar’s 2-1/2 month high vs yen ends after weak China trade data

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The dollar pulled back from a 2-1/2 month high against the yen on Thursday after surprisingly weak Chinese trade data stirred fresh concern about the world’s second-largest economy.

The dollar dropped to as low as 103.555 yen at one point, down 1 percent from the day’s high of 104.635 yen, which was the greenback’s strongest level since late July.

The dollar last stood at 103.84 yen, down 0.3 percent from late U.S. levels on Wednesday.

The safe haven yen pushed higher after data showed that China’s exports denominated in Yuan fell 5.6 percent in September from a year earlier.

China’s imports unexpectedly shrank 1.9 percent after picking up in August, suggesting recent signs of steadying in the economy may be short-lived.

The weak Chinese trade data triggered a fall in equities and a drop in U.S. bond yields and gave a lift to the yen, a safe haven currency that tends to rise in times of market stress.

Paul

The author Paul