Safe-haven currencies such as USD and JPY rise amid Afghan political unrest
USD and JPY both rose on Monday against riskier currencies such as AUD, NZD, and CAD. The rising strength of safe-haven currencies has implied some worries over the current political environment. Thousands of civilians are desperate to flee Afghanistan at the airport after the Taliban seized the national capital over the weekend. Moreover, China has shut down a major port due to safety concerns as the Delta variant continues to spread in the country. China’s July retail sales, industrial production, and fixed asset investment all missed the forecast. Industrial production increased by 6.4% in July on a yearly basis, versus the forecast at 7.8%. Retail sales increased by 8.5%, versus the forecast at 11.5%. Fixed asset investment grew by 10.3%, versus the forecast at 11.3%. Current COVID restrictions in China have severely hit the services sector and might further slow down the growth in August.