Currency Safe-Havens Bounce on Chinese Money Market Spike
Chinese money-market rates rose precipitously as the People’s Bank of China acted to tighten liquidity and prevent risky credit expansion. In response, the dollar, yen and Swiss franc all rose. “The weight of a weak U.S. nonfarm (payrolls) is surpassed by rising risk aversion on concerns over China’s money market. Profit-taking takes hold,” said Camilla Sutton, chief currency strategist at Scotiabank in Toronto.