Stock losses grow rise Yen, Swiss franc

Stock losses grow rise Yen, Swiss franc.

By Eric on Friday,
Stock losses grow rise Yen, Swiss franc. The yen and Swiss franc rose on Friday as oil prices slid and bank shares led global equity markets lower, Stock losses grow rise Yen, Swiss franc, stoking a fresh wave of bids for low-risk assets.

Jitters about the June 23 referendum on Britain’s membership in the European Union intensified the scramble for safe-haven investments, analysts said.

“The closer we get to the ‘Brexit’ vote, the more people will put on cautious positions,” said Alan Ruskin about Stock losses grow rise Yen, Swiss franc, global head of FX strategy at Deutsche Bank in New York.

The Swiss franc reached an eight-week peak against the euro at 1.0872 francs per euro EURCHF=. It was last up 0.3 percent at 1.0877 francs.

The Swissie was flat against the dollar CHF= at 0.9633 francs, holding above a five-week high set on Thursday.

Safe-haven demand also supported the yen. It was up 0.1 percent at 106.94 against the dollar JPY=, shaving its weekly loss versus the greenback to 0.4 percent.

The Japanese currency was up 0.3 percent versus the euro EURJP= at 120.72 yen, hovering near the three-plus year low of 120.29 yen seen on Thursday.

Anxiety about the Brexit, with recent polls showing a close vote on whether Britain would stay in the EU, knocked sterling to a seven-week low against the dollar at $1.4313 GBP=D4.

Traders also ditched emerging-market currencies ahead of the weekend with the South African rand ZAR= falling 2 percent, as they favored low-risk government bonds, sending yields on Japanese and German 10-year bonds JP10YT=RR DE10YT=RR to record lows.

Falling global bond yields were seen as negative for bank profits, pressuring their shares in equity markets worldwide. Oil prices LCOc1 CLc1 slipping from 2016 highs added to the selling in stocks.

The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 nations, fell over 1 percent.

Meanwhile, U.S. and Japanese policymakers are expected to produce no surprises at their meetings next week, analysts said.

Following a poor May jobs report, the Federal Reserve is widely expected to leave policy rates unchanged, while a Reuters poll showed the Bank of Japan is set to skip the chance to inject more stimulus.

“A lot of central banks are putting off decisions because of the referendum, and I think next week could, therefore, be a bit of a wash-out,” said Neil Mellor, currency strategist at Bank of New York Mellon in London.

The dollar index .DXY was last up 0.4 percent at 94.359, putting it on track for a modest weekly gain of 0.3 percent.

Source:  reuters.

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