Yen Boosted as Stocks, Commodities Rout Drives Aussie Lower

  • Dollar-yen one-month implied volatility gains to two-week high
  • South Africa's rand touches record low versus dollar
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The yen strengthened for a second day versus the dollar as investors fled to the safest assets amid an extension of Monday’s $800 billion slump in stocks.

One-month implied volatility of the Japanese currency against the dollar, a measure of anticipated price swings in the exchange rate based on options, climbed to a two-week high. The Australian dollar dropped for a second day as commodities and associated stocks tumbled amid concern China’s economy will continue to slow, while South Africa’s rand fell to a record.