Yen hits five-month high as US dollar extends fall

London

THE Japanese yen rose to a five-month high on Tuesday on the back of broad-based selling of the US dollar and speculation the Bank of Japan (BOJ) could be close to dialling back record levels of monetary stimulus.

The yen has gained 1.5 per cent against the US dollar this month, benefiting last week from a rush by investors into currencies deemed safer amid the rout in equity markets. But while risk appetite has recovered this week, investors have continued to sell US dollars and buy yen. The US dollar was down as much as half a per cent against a basket of currencies, reversing some of its gains of last week, when it enjoyed its best performance since 2016.