The yen climbed for six days in a row versus the euro today as confusion is plaguing investors worldwide, which are purchasing yen-priced assets to protect their portfolios from days of high volatility and extremely bearish markets, like those in the worse moments of the global slump being repeated currently.
The biggest loser versus the Japanese yen today was the Australian dollar, since the Reserve Bank of Australia officials suggested through an statement that interest rates will remain unchanged in the South Pacific nation, frustrating hopes that rates would be raise, a fact which if confirmed would raise attractiveness for the Aussie. The pound and the euro also lost value significantly versus the euro, as a result from a combination of rise in risk aversion and raising concerns regarding the economic future of main European nations, that weighed mainly on the pound today, since the U.K.’s recession is one of the most serious in the region.
As the global economic recovery comes slower and weaker than previously suggested by economists worldwide, market sentiment tends to fall, as the system of expectations has not been met by most of investors searching for yielding, consequently spurring demand for safe refuge currencies, which is the case of the yen.
EUR/JPY traded at 132.94 as of 13:22 GMT, after rebounding to 134.04 hours ago. GBP/JPY traded at 150.49 from 152.65.
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