The yen is having the best start to the year among major currencies while Australia’s dollar is set for its biggest one-week decline in 11 months as turmoil in China spreads to financial markets around the world.
Japan’s currency has surged at least 1 percent against all its 16 main peers in 2015 and reached the strongest in four months versus the dollar on Thursday as China’s tolerance for a weaker yuan renewed concern its slowdown will derail global growth. The Aussie slid to the lowest since September as the prices tumbled for commodities the nation exports.
The yen advanced 2.4 percent this week to 117.72 per dollar as of 10:03 a.m. in Tokyo after appreciating to 117.33 on Thursday, the strongest level since Aug. 24. Japan’s currency has risen 2 percent against the euro over the past five days to 128.54. It was little changed versus both its peers on Friday.
Australia’s currency has slumped 3.9 percent this week to 70.27 U.S. cents, the biggest slide since the week ended Jan. 23, 2015. It dropped to 69.81 cents on Thursday, the lowest level since Sept. 29.