The yen hangs on its gains and traders seek havens of peace

TOKYO (Reuters) – The yen maintained its gains against major currencies on Thursday, as declining US Treasury yields fueled fears of a global economic slowdown and pushed investors toward safe haven badets.

The reversal of the yield curve of US Treasury securities for the first time in 12 years has caused the latest turbulence on the financial markets, which has contributed to the rise in gold prices and caused a mbadive sell-off of shares and American oil.

The inversion of the yield curve, in which two-year bond yields are trading at a higher level than ten-year bonds, historically precedes previous economic recessions.

The dollar was little changed at 105.90 yen in Asian trade Thursday. On Wednesday, the yen rose 0.8% against the greenback, its biggest daily gain in two weeks.

The dollar index, which tracks the greenback's performance against a basket of six major currencies, hit 97.914 after gaining 0.2% on Wednesday.

Spot gold, which investors typically buy in times of economic uncertainty, has risen 0.3%, reaching its highest level in six years.

Against the dollar, the Swiss franc traded at 0.9735, keeping a gain of 0.3% on Wednesday.

Investors have many reasons to shun global risky badets.

The violent clashes between police and protesters in Hong Kong have plunged the city into the worst crisis since it returned to China after the British rule in 1997, resulting in increased risk aversion in the currency market.

On Wednesday, US President Donald Trump linked a trade deal with China to a humanitarian solution to the protests, exacerbating a broad clash with China over its trade and industrial policies.

The pound has changed little at $ 1.2069. The British currency has recently been confined to a narrow trading range because of lingering uncertainty about whether Britain will leave the European Union without trade interim agreements.

The Australian dollar appreciated 0.5% to 0.6786 USD after data showed that the country's economy had created 41,100 new jobs in July, exceeding expectations.

(Reuters)