The yen lost against all 6 major currencies as stocks continued a rally that is already the longest since 2003 on speculations that the global slump maybe ending, damping demand for the safe profile of the Japanese currency.
The yen lost the most versus the euro today as Japanese financial corporations raised over 700 billion yen to purchase assets abroad, damping demand for the Japanese currency not only among international investors, but also in the domestic scenario. Most of the Japanese economists suggest traders to purchase assets overseas linked to currencies like the Turkish lira and the Brazilian real, due to their high-yield emergent-market currencies profile. The yen was also affected today after national export figures, even if indicated a slight improvement, are still 35 percent less than the same period last year.
Currency specialists indicate that the current trend perceived on the yen charts is likely to continue further, as optimism is every day more present mainly in stock markets, forcing high-yield currencies up, pulled by equities positive performance, consequently damping demand for the yen. High-yield currencies like the Australian dollar and the South African rand tend to post the sharpest gains versus the yen, as long as reports with optimistic figures continue to be released, damping demand for safety.
EUR/JPY traded at 134.37 as of 10:34 GMT from 132.65 yesterday. CHF/JPY traded at 88.32 from 87.45 in the intraday comparison.
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