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 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 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.
"We did get sort of a message from the Fed yesterday and now we have to wait for a follow-up from Yellen, but she's probably going to stay the course at this point."
- Fabian Eliasson on Aug 21, 2014