Currency markets saw a wild spike in volatility in early Asian trade, with risk aversion pushing the yen sharply higher against the U.S. dollar, breaking key technical levels and triggering stop-loss sales of U.S. and Australian dollars.

The dollar was last 1.9 percent weaker against the yen at 106.85, having earlier fallen as low as 104.96, its lowest level since March 2018. The Australian dollar at one point hit levels against the Japanese yen not seen since 2011. (AUDJPY=D3)

The euro (EUR=) was up 0.2 percent, buying $1.1365, and the dollar index (DXY), which tracks the U.S. currency against a basket of major rivals, was 0.3 percent weaker at 96.504.

(For a graphic on ‘Currency Flash Crash’ click https://tmsnrt.rs/2RvrCQi)

Amid the flight to perceived safety, the yield on benchmark 10-year Treasury notes (US10YT=RR) was at 2.6328 percent compared with its U.S. close of 2.661 percent on Wednesday.

The two-year yield (US2YT=RR), was at 2.4777 percent compared with a U.S. close of 2.504 percent as signs of slowing growth ate away at expectations of further Federal Reserve rate hikes.

U.S. crude (CLc1) fell 2.1 percent to $45.57 a barrel, and Brent crude (LCOc1) was down 1.2 percent at $54.24. Slowing global growth is expected to coincide with an increase in crude supply, depressing prices.

Gold was higher as the dollar weakened, with spot gold trading up 0.5 percent at $1,290.91 per ounce. [GOL/]


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