Japanese yen is gaining today, thanks in large part to concerns about the global economy. Worries about what’s next for the economy have some Forex traders looking for safe haven, and that is boosting the yen today.
The International Monetary Fund issued a warning ahead of its meeting with the World Bank, indicating that the situation for the global economy is approaching dire. Between the “fiscal cliff” in the United States, and the increased possibility of recession in the eurozone (not to mention continued structural problems with the eurozone), as well as economic slowing in China, there are some serious issues facing the economy.
With this uncertainty, it is little surprise that the Japanese yen, long considered a safe haven currency, is up pretty much across the board against its major counterparts. The yen is strengthening on these economic concerns, even as its own economy continues to flounder.
The entire global economy is on the edge of recession, and that is affecting various markets, and helping the low beta currencies firm up their performances.
At 13:40 GMT USD/JPY is down to 78.3125 from the open at 78.3600. EUR/JPY is also lower, down to 101.1750 from the open at 101.5850. GBP/JPY is down as well, to 125.3700 from the open at 125.5450.
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