Yen jumps as oil, AI and France worries rattle markets
SPY•The yen strengthened 0.75% to 156.96 per dollar, its strongest daily gain in almost a month, as investors sought safety. The euro slipped 0.09% to $1.1222, while the France-Germany 10-year yield spread widened to 177.7 basis points, its largest gap since 2011.
1. Yen gains on safety demand
The yen was on track for its strongest daily gain in almost a month as fragile equity markets, elevated crude prices and doubts about future returns from artificial intelligence prompted investors to seek safety. The currency rose 0.75% to 156.96 per dollar; its approach toward 160 also increased speculation about possible intervention by Japanese authorities.
2. Dollar rises against euro
The US dollar gained against the euro as concerns about social unrest and France’s fiscal outlook outweighed worries about the AI trade. The euro fell 0.09% to $1.1222, while the dollar index slipped 0.08% to 101.60.
3. France bond spread widens
Oil prices climbed about 3% to a five-month high after Houthi attacks in Saudi Arabia raised concerns about energy supply disruptions. The spread between French and German 10-year yields reached 177.7 basis points, its widest gap since 2011, amid concerns about France’s debt burden.
