Covid-19 fears turn yen from haven to liability

The Japanese currency has slumped about 2% against the dollar this week to its weakest in 10 months, even as traditional havens gold and Treasuries pushed higher. As new cases mount, the impact of the virus on supply chains and demand is pummeling Japan’s economy, already under pressure after last year’s sales-tax hike.

TOKYO: Fear of the spreading Covid-19 coronavirus has turned the yen from a haven asset to a liability.

The Japanese currency has slumped about 2% against the dollar this week to its weakest in 10 months, even as traditional havens gold and Treasuries pushed higher. As new cases mount, the impact of the virus on supply chains and demand is pummeling Japan’s economy, already under pressure after last year’s sales-tax hike.