Forex – dollar retreats as investors turn to the yen

© Reuters. – The u.s. dollar fell Thursday, as fears of a global slowdown has resulted in an increase of the yen.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.49% to 95,95 to 10h56 ET (15h56 GMT), while the USD / JPY has lost 1,15%. 107.61.

The yen was up 4.4% at the beginning of the session after a flash crash in Asia, due to the automated commands. The crash has spread to other currency markets, Japan is still on holiday for the New Year.

The yen is often seen as a refuge in times of global uncertainty.

“It is a continuation of some of the market’s concerns related to China, the United States and, more specifically, to a revaluation of the dollar as a safe haven,” said Jane Foley, analyst foreign exchange at Rabobank.

Global equities also fell Thursday after Apple (NASDAQ: AAPL) has lowered its forecast for revenue, citing a decline in chinese sales due to the trade war between the United States and China, which weakens the strength of the chinese economy.

The slowing growth of the manufacturing sector in the United States has also disrupted the markets, investors worried about the slowdown of the economic growth. The PMI manufacturing index ISM fell to 54.1 in December, while the forecast amounted to 57.7.

Elsewhere, the GBP / USD decreased slightly from 0.02% to 1,2603. The euro was rising as a result of the decline in the dollar, with an increase of the EUR / USD from 0.5% to 1,1392. The NZD / USD rose 0.4% to 0,6680 while the AUD / USD rose 0.16% to 0,6995. The USD / CAD down 0.46% at 1.3513.

-Reuters contributed to this article.

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