Safe-Haven Currencies Soar Amid Global Market Selloff

Safe-haven currencies like the Japanese yen and Swiss franc gained strength as a tech-led Wall Street selloff affected Asian markets. Meanwhile, the U.S. dollar remained stable, driven by haven flows and diminished expectations for Federal Reserve rate cuts. Emerging economic tensions influenced global currency and stock movements.

The safe-haven Japanese yen and Swiss franc strengthened on Wednesday, as the aggressive tech-driven selloff from Wall Street made its way to Asian markets. Concurrently, the U.S. dollar remained robust, buoyed by haven flows and falling anticipation of immediate Federal Reserve interest rate reductions.

The risk-sensitive Australian and New Zealand dollars faced downward pressure, with the latter hitting a near seven-month low following unfavorable employment data. Additionally, sterling struggled close to a seven-month low, reflecting potential broad tax hikes signaled by British finance minister Rachel Reeves.

Asia's stock markets saw significant drops, highlighted by Japan's Nikkei and South Korea's KOSPI plummeting after hitting record highs earlier in the week. Investors remain cautious amidst mixed signals from the Federal Reserve, an ongoing U.S. government shutdown, and upcoming payroll data releases.

(With inputs from agencies.)