Welcome Guest! | World Time






New York

Safe-haven yen hits six-month low

Monday,   02-Dec-2019   01:23 PM (IST)

The Japanese yen hit a six-month low on Monday as investors cheered an unexpected rebound in Chinese manufacturing, while a tightening British election race knocked the pound. The safe-haven yen fell 0.2% to 109.72 per dollar, its lowest since May, and riskier currencies rallied after two surveys showed Chinese factory activity expanding. Sterling was down a quarter of a percentage point at $1.2913 as a clutch of polls pointed to a sharply narrowing lead for the Conservative Party ahead of the Dec. 12 election. Gains were led by the kiwi, which put on 0.6% against the yen to hit its highest since August and rose 0.3% on the greenback to buy $0.6444, its strongest in a month. China’s factory activity expanded at the quickest pace in almost three years in November, a private business survey showed on Monday, following upbeat official data over the weekend. The Caixin survey also showed total new orders and factory production at buoyant levels. Even a report from news website Axios, citing a source close to the U.S. negotiating team, saying that tensions in Hong Kong had stalled Sino-U.S. trade talks was not enough to dent the sentiment. China warned the United States last week it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong, but has yet to offer any details. The trade-sensitive Australian dollar headed for its biggest percentage gain in two weeks, added 0.2% to $0.6774. The greenback held steady against the euro at $1.1017 and against a basket of currencies at 98.319. The possibility of further monetary easing in China - and the lack of firm news on trade - kept the yuan on an even keel at 7.0301 per dollar. The next focus will be on manufacturing surveys in Europe and the United States later in the day.