The yen fell against the U.S. dollar today as several evidences are suggesting that the American economy may be finally recovering, making traders who opted for the Japanese currency as a refuge from uncertainties to bet once again in dollar-priced assets.
After U.S. President Barack Obama declarations indicating that job losses are slowing down and many economic sectors are already growing again, the U.S. dollar found the support necessary to gain versus the yen and several other currencies, as according to some analysts, it could be also undervalued. The yen also lost versus the British pound earlier, as the real estate market showed signs of stabilization, raising confidence for the pound, even if previous gains were later pared. The U.S. dollar may gain even further versus the Japanese yen, as favorable reports in the North American nation may decrease attractiveness for the relative safety of the Japanese currency, affecting its price.
As long as the economy continues to show resilience, mainly in the U.S., the yen is likely to become less appealing for traders, since, even in a positive scenario, there are other trading options in Asia that can provide higher yieldings, such as in South Korea, that is providing better economic data than Japan, and also has more attractive interest rates.
USD/JPY traded at 91.12 as of 10:19 GMT from a previous rate of 90.69 in the intraday comparison. EUR/JPY traded at 133.16 from 133.08 yesterday.
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