The yen fell to a six-month low versus the dollar after reports showed manufacturing in China, Europe and the U.K. expanded last month, driving demand for risk and underscoring Japan’s currency’s role in the carry trade.
The yen strengthened versus most of its 16 major peers as a private report showing Chinese manufacturing contracted more than economists estimated last month spurred demand for safer assets.
The yen declined the most in seven weeks versus the dollar as Russian President Vladimir Putin said there’s no immediate need to send troops to Ukraine, damping demand for safer assets.
"Poor retail sales this morning obviously did not help the stock market and just further exacerbated the risk-off mood."
- Fabian Eliasson on Jan 14, 2015