Aussie Slides to Six-Year Low as Pre-Payrolls Nerves Boost Yen
ASTANA. KAZINFORM Australia's dollar slid to a six-year low versus the greenback while the yen headed for its biggest weekly advance this year as investors sought safety before a U.S. jobs report that could encourage the Federal Reserve to raise interest rates for the first time since 2006.
The Aussie dropped against all major developed peers Friday, on track for its worst week since January, amid concern Chinese shares will resume their slide when the stock market reopens following holidays this week. The yen headed for a third weekly gain after a China-led global stock rout wiped more than $7 trillion dollars from markets. "There's nervousness in the market about growth in Asia and the implications of the Fed changing policy, should payrolls be seen as clearing the way for a hike," said Sean Callow, a strategist at Westpac Banking Corp. in Sydney. "The mood is probably gloomy enough that the Aussie is going to struggle near term." The Australian dollar fell 0.8 percent to 69.62 U.S. cents at 1:40 p.m. in Tokyo, after slumping as low as 69.59 cents, the weakest since April 2009. It has dropped 2.9 percent since Aug. 28. The yen gained 0.7 percent to 119.24 per dollar, heading for a 2.1 percent weekly advance. That would be the steepest climb since the period ended Dec. 12, Bloomberg reports.