Yen jumps as oil, AI and France worries rattle markets
TLT•The yen strengthened 0.51% to 157.33 per dollar, its strongest daily gain in almost a month, as investors sought safety. The dollar rose 0.14% against a basket of currencies, while the France-Germany 10-year yield spread widened to 177.7 basis points, its largest gap since 2011.
1. Yen gains on risk aversion
The yen was on track for its strongest daily gain in almost a month as investors sought safety amid fragile equity markets, elevated crude prices and doubts about future returns from artificial intelligence. Brent crude climbed to its highest level since May after further Houthi attacks in Saudi Arabia raised fears of Middle East escalation and disrupted oil supplies.
2. France weighs on euro
The dollar rose 0.14% to 101.82 against a basket of currencies, while the euro fell 0.3% to $1.1198. Worries about social unrest and France’s fiscal outlook outweighed concerns about the AI trade. The spread between French and German 10-year note yields reached 177.7 basis points, its widest since 2011.
