Traders fleeing to yen in global rout become enemy of Abenomics
Tokyo
RISK-AVERSE investors are becoming the nemesis of Japanese Prime Minister Shinzo Abe.
The yen is the best-performing major currency this quarter amid a rush for havens from the turmoil stalking global markets. Options suggest that there is an almost even chance of a gain to 115 per US dollar by Dec 31, a level that the currency has not closed at all year.
Buyers are attracted by Japan's current account surplus, which makes it relatively immune to overseas shocks like China's surprise devaluation last month. Yet the stronger exchange rate is hampering Mr Abe's efforts to address the nation's lacklustre growth and falling consumer prices - less we…
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