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The yen strengthens as the Wall Street sell-off drove investors to be unsettled

04 Sep,2024
The yen strengthens as the Wall Street sell-off drove investors to be unsettled

The yen ticked up versus the greenback on Wednesday as investors rushed to safer assets following a steep sell-off on Wall Street in the earlier session, driven by worries over the economy status in the US and tech sector.

The U.S. manufacturing data was disappointing, which fueled concerns about a potential hard landing for the world's largest economy. Traders were already anxious with the most anticipated monthly payroll report looming on Friday.

U.S. stock indexes dropped on Tuesday, led by a nearly 10% decline in AI chip leader Nvidia. This wave of risk aversion extended to Asian and European markets on Wednesday.

The yen edged up by 0.4% to 144.89 per dollar pre the previous trading adding 0.3% at 144.95, after 1% surge overnight.

USD/JPY touched numerous lowest levels at 141.68 in August after unexpected weakness in job data and the interest rate rise decision by BOJ.

Economists polled by Reuters anticipate that Friday's report will reveal a gain of 165,000 U.S. jobs in August, an increase from the 114,000 jobs added in July.

Before the release of Non-Farm Payroll report, investors will keep close watch on JOLTS report on Wednesday and jobless claims on Thursday.

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