Yen and euro sink as officials ease global nerves
- 8 years ago
The euro and yen weakened 1 percent against the dollar on Monday, with investors reversing the past week's search for traditional safe locations for capital as officials signaled they could do even more to spur the global economy.
With U.S. markets closed for a domestic holiday, Japanese Prime Minister Shinzo Abe led the way by warning Tokyo would take action against "excessive currency volatility" - read universally as a threat to intervene against the yen.
Chinese central bank chief Zhou Xiaochuan also played down concerns over falls in its currency reserves, helping drive the biggest daily rise in onshore rates for the yuan since China dropped an official peg to the dollar in 2005.
Onshore rates for the yuan, whose fall since December has been one of the big elements unsettling markets, gained 1.2 percent from levels seen in its last trading before the Lunar New Year holiday began more than a week ago.
With U.S. markets closed for a domestic holiday, Japanese Prime Minister Shinzo Abe led the way by warning Tokyo would take action against "excessive currency volatility" - read universally as a threat to intervene against the yen.
Chinese central bank chief Zhou Xiaochuan also played down concerns over falls in its currency reserves, helping drive the biggest daily rise in onshore rates for the yuan since China dropped an official peg to the dollar in 2005.
Onshore rates for the yuan, whose fall since December has been one of the big elements unsettling markets, gained 1.2 percent from levels seen in its last trading before the Lunar New Year holiday began more than a week ago.