Wall Street shares had rebounded on Friday after a report that Germany’s coalition government was prepared to set aside its balanced budget rule in order to take on new debt and launch stimulus steps to counter a possible recession.
The Japanese currency last traded at 106.440 per dollar, having pulled back from a seven-month peak near 105.000 reached a week ago when events including unrest in Hong Kong and a meltdown in Argentina’s markets triggered a fresh bout of anxiety in markets already shaken by the U.S.-China trade war. “As for steps by China, it needs to be understood that the latest measures are geared towards markets which are already regulated extensively. But China’s latest move should nevertheless provide the market with relief.”
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