Yen surged against global currencies after ‘flash crash’

The Japanese yen hit its highest level since March against the U.S. dollar on Wednesday evening after what some traders are calling a “flash crash.”

Against the euro, the yen hit 122.14 after hitting its highest level since April 2017. The yen also surged against the Turkish lira, pushing it below 20 for the first time since late October.

“The moves have partially retraced … however still resemble a flash crash,” said Craig Nicol, macro strategist at Deutsche Bank, in a note. “So it would be a stretch to say that there’s much conviction at the moment with moves in markets over the last couple weeks hardly healthy.”

The yen’s sharp moves come in a time of heightened volatility across financial markets. Last week, the Dow Jones Industrial Average posted its first-ever single-day move of more than 1,000 points. The 30-stock index also recorded 12 moves of at least 1 percent in 19 trading days last month.

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Michael Bloom
contributed to this report.

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