USD/JPY despite weaker dollar

The Japanese yen fell on Wednesday, despite severe pressures on the US dollar, as investors rushed to precious metals for shelter as the US-China tensions continued to escalate. 

Earlier Japanese data showed the Markit manufacturing PMI down to 42.6 from 40.1, missing estimates from 39.6. 

In addition to the coronavirus crisis, which continues to cast its shadow on global markets, a new round of the tensions between the US and China have been reopened once again.

This came after the US has ordered the Chinese Foreign Ministry to close its consulate in Houston in order to protect American intellectual property from Chinese piracy.

A US federal judge yesterday issued an arrest warrant for two Chinese citizens living in the US, for accusations of trying to hack research labs developing coronavirus vaccines.

As of 19:25 GMT, USD/JPY rose 0.4% to 107.2, with an intraday high of 107.2 and a low of 106.7.