The yen is set for its biggest quarterly gain against the dollar in three years as market turmoil fueled demand for safer assets, overriding the prospects of higher U.S. interest rates.
A gauge of the yen versus its developed-nation peers has risen 6.6 percent this quarter as China’s abrupt devaluation of the yuan last month fueled speculation of a slowdown in the world’s second-largest economy. Australia’s dollar was the biggest loser as the economy grapples with both the end of a mining investment boom and the deceleration in China, its biggest trading partner.
The yen has risen 2.2 percent this quarter to 119.91 per dollar as of 9:02 a.m. in Tokyo, the most since it gained 2.4 percent during the third quarter of 2012. It weakened the previous four periods. Japan’s currency was little changed against the dollar on Wednesday.