On Wednesday, the number one Japanese currency managed to strengthen against its competitors during mixed Asia trade, powered by the afternoon selling of stocks in Tokyo. The yen is considered to be a safe asset once again.
The greenback sagged to ¥113.88 right after getting to a high of ¥114.40, compared to ¥113.96 in New York on Tuesday.
Investors turned skeptical regarding any recently discussed deals on crude-oil output, lowering oil prices. On Tuesday, key oil producers, including Saudi Arabia, Russia, Qatar, Venezuela decided to freeze their oil production. Nevertheless, the deal turned questionable as Iran is reluctant to join the initiative.
Recent gains in American stocks helped the evergreen buck to leap back above ¥114, though the dollar came under another selling pressure when Asian shares softened.
The Nikkei Stock Average lost its earlier gains, lacking 331.25 points, and the Shanghai Composite Index dropped to 2829.68, a 0.24% decrease.
It’s quite terrible for the vast majority of market participants to be passive witnesses of this turnaround into a yen weakening trend. In general, the market seems to have calmed down, as we see the US dollar trading between ¥111 and ¥115.