China sell-off sends yen, Swiss franc soaring

London

THE dollar sank to an 11-week low against the yen on Monday, hit by a renewed stock market sell-off in China that sent traders running for the traditional security of the Japanese currency and the Swiss franc.

Even if a majority of the biggest bank and fund traders expect more strength for the greenback this year, doubts about that have been writ large in a month when it fell almost 5 per cent against the euro and almost 3 against the yen. Another 6-7 per cent slide in Shanghai shares was the trigger on Monday, suggesting again that the global economy may struggle to handle many more rises in US interest rates this year - likely to be the central driver for any further dollar rally.