Yen soars despite turbulent week
The Japanese yen ended the week at 13-year highs against the US dollar while other currencies fell against the greenback amid ongoing global market turmoil over a slumping world economy.
The yen soared to 13-year highs against the dollar on fears of global recession which led investors to seek refuge.
The Japanese currency hit 90.87 against the dollar at one point in London on Friday, surging to the 90 yen level for the first time since August 1995.
The rate compared with 95.14-17 against the dollar in Tokyo late Friday and 101.03-06 a week earlier.
The yen often rises at times of financial turmoil as dealers unwind risky bets funded with cheap Japanese credit.
"When you don't know what will come next, you tend to flee to the safest place," Credit Suisse strategist Satoru Ogasawara said.
The sharp rise in the yen in turn contributed to a major selloff on the Tokyo stock market which plunged 9.60 percent to a five-year low on Friday.
"Investors are watching share prices, trying to avoid risk," Hachijuni Bank forex dealer Masatsugu Miyata said. "It's no surprise that the dollar keeps falling."
He added that investors felt that the "bottom has opened up" after the dollar touched the 95 yen level.
Market players are awaiting the US Federal Reserve's monetary policy meeting on Tuesday and Wednesday and the release of July-September US gross domestic product data on Thursday, dealers said.
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