CURRENCY VIEW

Major Forex News
Yen Rises With Swiss Franc on Global Growth Concern
The yen jumped the most in almost three months against the dollar and five weeks versus the euro as Chinese manufacturing shrank and stocks fell around the world, reviving demand for the safety of Japan’s currency.
The yen surged as much as 2.7 percent versus South Korea’s won and 1.8 percent against the Mexican peso as Economy Minister Akira Amari said equity losses can boost the Japanese currency. The Swiss franc climbed the most against the euro since the central bank imposed a currency floor in 2011. South Africa’s rand dropped for an 11th day, the longest losing streak in 25 years. The Dollar Index fell after reaching a three-year high.
The yen strengthened 1.4 percent to 101.67 per dollar at 7:22 a.m. in New York after climbing as much as 2.3 percent, the most since Feb. 25. It slid to 103.74 yesterday, the weakest since October 2008. Japan’s currency rose 1.2 percent to 131.04 per euro. The dollar dropped 0.2 percent to $1.2888 per euro.
The MSCI Asia Pacific Index of shares tumbled 3.3 percent, the Stoxx Europe 600 Index slid 1.9 percent and futures on the Standard & Poor’s 500 Index expiring in June fell 0.8 percent. An index of Chinese factory output declined to 49.6 in May from 50.4 the previous month, HSBC Holdings Plc and Markit Economics said today. A euro-area composite index based on a survey of purchasing managers in services and manufacturing was at 47.7 from 46.9 in April, Markit Economics said. Readings below 50 indicate contraction.