FOREX-Yen jumps as investors stay cautious amid volatile stock moves

An image of a stock chart with a coin on top of it Credit: Shutterstock photo

* Safe havens Japanese yen, Swiss franc outperform

* Dollar dips as stocks continue rally (Updates prices)

By Karen Brettell

The benchmark S&P 500 .SPX tested its 20-month low earlyin the week and was at the brink of bear market territory beforethe three main indexes roared back with their biggest dailysurge in nearly a decade on Wednesday and a late rally onThursday.

The yen gained despite soft domestic data and a decline inbenchmark Japanese bond yields, which fell back into negativeterritory for the first time in more than a year.

"That suggests that there's still demand for some insuranceagainst extended volatility over the holiday period that'skeeping the yen better supported," said Shaun Osborne, chief FXstrategist at Scotiabank in Toronto.

The Japanese currency was last up 0.56 percent against thegreenback at 110.37 yen. Another safe-haven currency, the Swissfranc CHF= , gained 0.26 percent at 0.9849.

"Markets are a bit more cautious on risk appetite, with theJapanese yen and the Swiss franc gaining," said Lee Hardman, anFX strategist at MUFG in London.

The dollar index, a gauge of the greenback against a basketof six major currencies, fell 0.09 percent to 96.396 .DXY .

The U.S. currency has been hurt in recent weeks by risingexpectations that the Federal Reserve will pause its tighteningcycle sooner than expected, or potentially harm the U.S. economywith further interest rate increases.

A partial shutdown of the U.S. federal government, tradetensions between the United States and China and complicationsrelating to Britain's exit from the European Union are alsokeeping investors cautious.

"There's still a lot of potential risk and uncertainty outthere," said Osborne.

Both chambers of the U.S. Congress convened for only a fewminutes late on Thursday, but took no steps to end the partialfederal government shutdown before adjourning until next week.


Currency bid prices at 1:48PM (1848 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session Euro/Dollar EUR= $1.1440$1.1429 +0.10% -4.63% +1.1476 +1.1424 Dollar/Yen JPY= 110.3700 110.9900 -0.56% -2.04% +111.0400 +110.2300 Euro/Yen EURJPY= 126.34 126.89 -0.43% -6.54% +127.0300 +126.2800 Dollar/Swiss CHF= 0.9849 0.9875 -0.26% +1.09% +0.9886 +0.9791 Sterling/Dollar GBP= 1.2689 1.2642 +0.37% -6.09% +1.2710 +1.2635 Dollar/Canadian CAD= 1.3644 1.3616 +0.21% +8.48% +1.3659 +1.3592 Australian/Doll AUD= 0.7039 0.7033 +0.09% -9.77% +0.7069 +0.7028 ar Euro/Swiss EURCHF= 1.1268 1.1289 -0.19% -3.60% +1.1302 +1.1215 Euro/Sterling EURGBP= 0.9013 0.9039 -0.29% +1.46% +0.9061 +0.9004 NZ NZD= 0.6699 0.6702 -0.04% -5.46% +0.6720 +0.6693 Dollar/Dollar Dollar/Norway NOK= 8.7253 8.7680 -0.49% +6.32% +8.7716 +8.6826 Euro/Norway EURNOK= 9.9831 10.0245 -0.41% +1.37% +10.0440 +9.9505 Dollar/Sweden SEK= 8.9662 9.0069 -0.40% +9.32% +9.0144 +8.9389 Euro/Sweden EURSEK= 10.2580 10.2996 -0.40% +4.26% +10.3120 +10.2410

(Additional reportung by Saikat Chatterjee in London; Editingby Richard Chang) ((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; ReutersMessaging: karen.brettell.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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