He japanese yen rises on Monday as investors searched for safe-haven assets after the cut-price acquisition of Credit Suisse by rival UBS did not calm market nerves.
ANDUnder the agreement, holders of Credit Suisse’s additional $17 billion of Tier 1 (AT1) bonds will be liquidated. This angered some of the debt holders, who thought they would be better protected than shareholders, and unsettled investors in AT1 bonds from other banks.
The yen, long seen as a safe haven in times of stress, rallied on Monday as the slide in shares of Asian banks spread to Europe. The dollar touched its lowest level since February 10 against the Japanese currency, at 130.55 yen, and subsequently lost 0.75%, at 130.83 yen.
The euro, for its part, lost 0.11% against the dollar and was trading at $1.065, while the pound sterling rose 0.14% and was trading at $1.22. The dollar was up 0.31% against the Swiss currency at 0.929 francs.
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As part of regulators’ efforts to shore up confidence in the global banking system, central banks moved on Sunday to bolster cash flow around the world.
The US Federal Reserve offered daily currency swaps to ensure banks in Canada, the UK, Japan, Switzerland and the euro zone had the dollars they needed to operate, echoing measures taken during the 2020 COVID crisis.
The dollar index, which measures the currency’s performance against a basket of six currencies, is unchanged at 103.79, after falling 0.73% last week.
Source: Ambito
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