The Japanese yen fell today as fears on the Forex market eased, damping demand for riskier currencies. It was the first day of losses after the four-day rally versus the euro and the Great Britain pound.
The yen was down of speculations that the rally has been overdone. Previously, the Japanese currency was rising on signs of slower growth in the United States. The manufacturing Purchasing Managers’ Index of Institute for Supply Management dropped from 56.5 percent in December to 51.3 in January.
There still are reasons for concerns as the central banks of the European Union and the United Kingdom will meet this week to set their monetary policies. It is unlikely that the Bank of England will change anything, but there are speculations that the European Central Bank make take steps to stimulate economy again.
USD/JPY advanced from 100.96 to 101.64 as of 22:40 GMT today. EUR/JPY was up from 136.55 to 137.35 and GBP/JPY rose from 164.61 to 165.94.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.