The yen had one of the best performing days this week as rising concerns that the global slump will be longer than previously expected plagued markets worldwide with high levels of risk aversion, bringing investors to bet on the safety of the Japanese currency.
The yen rose against the greenback after U.S. Vice President Joe Biden affirmed that government measures to stimulate the economy may take up to 18 months to work, immediately raising insecurity and confusion regarding the future of the North American economy. The Japanese currency rose the most versus the euro, as several events added to the bearish sentiment for the European common currency, including speculations that more than 10 Eastern European nations will need loans from the International Monetary Fund to stabilize their economies, mostly in critical budget conditions. The yen also gained sharply versus the South African rand, one of the most
Currency specialists affirm that the yens rally may continue for the next weeks, as last years credit crunch memories are still very vivid among traders, pushing market downs on any signs that the expected economic recovery wont happen anytime soon, which is favorable for the yen, since it is the safest bet for times of confusion and pessimism.
USD/JPY traded at 92.66 as of 10:41 GMT being rather stable after bottoming at 91.77. EUR/JPY declined to 128.61 from 130.15 in the intraday.
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