JPY Rallies on Risk-Aversion

By Korman Tam
24 August 2010 @ 05:44 pm EDT

Global risk-appetite continued to wane as traders dumped stocks and shifted into safe-haven assets in the Tuesday session. The Dow Jones slid by more than 1.3%, while the S&P 500 lost 1.45% and the Nasdaq shed 1.66%. Meanwhile, crude oil extended its decline, tumbling by 2.2% to $71.53-per barrel and dragging crude lower by almost 14.6% since climbing past the $83-level in early August. Benefiting most from heightened risk-aversion were the Japanese yen and the Swiss franc, trading higher by 1.4% and 1% against the greenback, respectively.

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