FOREX-Yen set for biggest weekly rise since November

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* Chart: Global exchange rates https://tmsnrt.rs/2RBWI5E

By Saikat Chatterjee and Ritvik Carvalho

LONDON, July 9 (Reuters) – The Japanese yen weakened on Friday as the downward spiral in U.S. Treasury yields faltered, but it was heading for its biggest weekly gain since November amid concerns about to the global economic recovery.

Bonds rallied this week, with 10-year U.S. Treasury yields falling as much as 20 basis points to a February low, while stocks took a hit around the world as fears mounting the The fast-spreading Delta variant of COVID-19 will only derail a recovery that is already showing pockets of weakness.

While currencies seen as safe havens, notably the yen and the franc, weakened 0.3% against the dollar at the start of trading in London, the yen was on track to strengthen 0.9% this year. week, its largest weekly increase since early November 2020.

“Yesterday’s decline in the dollar-yen is reversing with equity risk appetite, suggesting that there are no broader ripple effects in markets as of yet – the same movement is seen in the US 10-year yield rebounding above 1.3%, “said Steen Jakobsen, chief investment officer. manager at Saxo Bank.

“This week’s price action suggests technical risk with more repositioning of reflation trades.”

The dollar index recovered part of Thursday’s 0.36% decline, rising less than 0.1% to 92.426. On Wednesday it hit a three-month high of 92.844.

Data from Thursday showed the number of Americans filing new jobless claims rose unexpectedly last week, indicating that the job market recovery from the COVID-19 pandemic continues to be choppy. .

The broader sentiment has remained weak thanks to an increase in coronavirus cases around the world with stay-at-home orders in Sydney, Australia’s most populous city, tightening further. Britain has also seen the number of cases increase.

The Aussie gained 0.1% to $ 0.7439 after hitting a new year low of $ 0.7410. On Thursday, it posted a decline of 0.7%.

The New Zealand kiwifruit also gained 0.1% to $ 0.69515 and fell to $ 0.6923, tying the lowest level since November. It plunged more than 1% in the previous session.

The euro held onto most of a 0.45% jump from the overnight, slipping less than 0.1% to $ 1.18395.

(Reporting by Saikat Chatterjee and Ritvik Carvalho; editing by Nick Macfie, William Maclean)



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