August 2, 2021

Yen set for biggest weekly rise since November; risk FX recovery takes shape

  • Graphic: World FX rates

LONDON, July 9 (Reuters) – The Japanese yen weakened on Friday as a downward spiral in U.S. Treasury yields ran out of steam and risk appetite began to recover, but the currency was still on track for its biggest weekly gain since November.

Bonds have rallied this week with 10-year U.S. Treasury yields falling as much as 20 bps to a February low while stocks took a hammering worldwide amid growing concerns the fast-spreading Delta variant of COVID-19 could derail a revival that is already showing pockets of weakness.

While the perceived safe-haven currencies including the yen and the franc weakened by 0.3% against the dollar in early London trading, the yen was on track to strengthen 0.9% this week, its biggest weekly rise since early November.

“Yesterday’s decline in dollar-yen is reversing together with risk appetite in equities…

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