Yen surges to 4-month high as yuan slides further

London

THE yen rose to its highest against the dollar in more than four months on Thursday as investors looked for a haven after China guided the yuan aggressively lower, fuelling fresh anxiety about its economy and its policy intentions.

The dollar dropped nearly one per cent to 117.33 yen, a level not seen since late August, and was last trading at 117.60 yen, still down 0.8 per cent. The euro was down 0.1 per cent against the yen, close to Wednesday's nine-month lows.