Yen Surges as Recession Fears Roil Global Markets

Japan's yen hit its highest levels against the dollar since January, driven by weak U.S. labor data and recession worries. This triggered a global sell-off in stocks, oil, and high-yielding currencies. Investors sought safety in the yen and Swiss franc, while U.S. Treasury yields and the dollar index plummeted.

Japan's yen surged to its highest levels against the dollar since January on Monday, as weak U.S. labor data triggered recession concerns and expectations of deeper Federal Reserve rate cuts. This led to a global sell-off in stocks, oil, and high-yielding currencies.

The trend continued into Monday with U.S. Treasury yields falling further, stock indexes in the red, and the dollar losing ground mainly to the yen. High-yielding currencies like the Indian rupee and Mexican peso plummeted, while funding currencies such as the yen and China's yuan rallied strongly.

The yen, a popular carry-funding currency, traded at 143, up 2.3% versus the dollar, hitting levels last seen on January 2. It spiked as high as 142.20, while other funding currencies like the Swiss franc also saw gains. The euro edged up 0.2% to $1.0937, while the dollar index dropped 0.4% to 102.72.

(With inputs from agencies.)