Yen hits 17 month high as forex traders avoid risk

[NEW YORK] The yen pushed to an 17-month high against the US dollar on Tuesday as investors sought refuge in equity selloffs and warnings on weak global growth from the IMF.

The yen breached the 110 barrier before slipping back to 110.28 per dollar, a level last seen at the end of October 2014.

It also rose to 125.55 per euro, compared to the March high of 122.07.

"It's just a lot of risk-off trade today. We had a little bit of a sell off on the equities market," said Boris Schlossberg of BK Asset Management.

Markets were hit by weak economic indicators in Europe and a warning by International Monetary Fund Managing Director Christine Lagarde that developed economies need to boost fiscal stimulus to prevent a backwards slide in the global economy.

"The not-so-good news is that the recovery remains too slow, too fragile, and risks to its durability are increasing," she warned in Frankfurt.

"Emerging markets had largely driven the recovery and the expectation was that the advanced economies would pick up the 'growth baton.' This has not happened." The British pound meanwhile slipped back against the dollar, to US$1.4156.

AFP