BloombergFear of the spreading COVID-19 outbreak in China has turned the yen from a haven asset to a liability. As new cases of the virus mount, the impact of COVID-19 on supply chains and demand is pummeling Japan’s economy, already under pressure after last year’s sales-tax hike. The benchmark 10-year US yield fell to a five-month low this week, but the US dollar-yen’s move in the opposite direction suggests little haven demand for Japan’s currency. “And the economy is expected to get even weaker.”Currency sell-offs were not limited to the yen in Asia. “The dollar is reclaiming its original status of a haven currency,” Matsunami said.
Source: Taipei Times February 21, 2020 15:56 UTC