On Friday, the yen held most of its overnight gain after falling US yields and market unrest supported the Japanese currency, while another sell-off on Wall Street led to a safe flight to the dollar, which remains near 20-year highs .

On Friday morning, the yen was at 129.14 per dollar, softening the day after reaching a two-week peak of 127.5 overnight.

The 1.2% drop in the dollar / yen on Thursday was the biggest daily drop this year.

The euro / yen crude fell 2.5%, the biggest daily drop since 2016 as the common currency fell victim to a “risk” mood.

“The yen is perhaps the most obvious signal of a shift from a world where yields were dominant and risk was steady (negative yen), to a world this week where the dominant force is an acidic appetite for risk that reduces yields (positive yen)” . said in a note Alan Ruskin, macro-strategist at Deutsche Bank.

The benchmark yield for the 10 years of the US was 2.8822%, declining each session this week from Monday’s high of 3.203%.

Rising yields in the U.S. at a time when the Bank of Japan intervened to maintain Japanese benchmark yields led to a softening of the yen this year.

Investors continue to move to safe assets, fearing that raising the central bank’s rate to curb inflation could affect global economic growth, while MSCI shares around the world fell to their lowest level since November 2020.

After the Fed raised its benchmark interest rate by 50 basis points last week, the biggest increase in 22 years, investors are assessing how aggressive the central bank’s policy will be.

Expectations are fully estimated for the next increase of at least 50 basis points at the June meeting of the central bank, according to CME Fed Watch Tool.

The euro was at $ 1,038, approaching the 2017 low of $ 1,034.

A break in the past that will be the lowest in almost 20 years. The weak euro kept the dollar index at 104.75, slightly below its 20-year peak of 104.92.

Sterling fell $ 1.2206 and the Australian dollar also fell $ 0.6887.

Crypto markets were more stable on Friday after a week of turmoil, as sentiment from risk combined with a spectacular collapse of the Terra USD stable coin.

According to the Coin Market Cap, the total market value of all cryptocurrencies was $ 1.2 trillion as a result of the sell-off, less than half of what it was last November. December 28, 2020 But at the start of trading on Friday, things were calmer when bitcoin rose 1.73% and traded around $ 29,400.

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