Economics
Coronavirus Fears Turn Yen From Haven to Liability
- Dollar-yen’s correlation with U.S. yields has collapsed
- Greenback’s dominance sees yen sold with Asian peers
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Fear of the spreading coronavirus is stripping the yen of its title as a haven asset.
The Japanese currency has fallen about 2% against the dollar this week to its weakest in 10 months, even as traditional havens gold and Treasuries pushed higher. As new cases mount, the impact of the virus on supply chains and demand is pummeling Japan’s economy, already under pressure after last year’s sales-tax hike.