Yen drops as virus risks lessen, yuan eases after rate cut

The Japanese yen dropped to a near nine-month low against the dollar as investors recover gain appetite, hoping that China can reduce the impact of the virus outbreak.

The yuan was down in onshore trade against the dollar after China cut benchmark loan prime rate to support its economy.

The AUD dropped to its lowest level in over ten years.

The yen, considered a safe haven since the virus outbreak, dropped as the virus began to slow down. Signs that the Chinese government is ready to take more drastic measures to support its economy reduced demand for safe haven assets.

The yen was down 111.29 against the dollar in Asia trade on Thursday. The currency fell 1.3% on Wednesday, its largest decline since August.

In onshore market, the yuan dropped 0.9%, at $7.0046 after the 10 basis points cut on the one-year loan prime rate.

China’s manufacturing businesses began coming back to work after the temporary closures and travel restrictions.

The Swiss franc, also a safe haven, traded at $0.9832. The Australian dollar fell to $0.6641. The pound traded at $1.2920.