The Japanese yen rallied today against other most-traded currencies as the traders’ mood soured. Risk appetite waned after the rally of crude oil prices had come to a halt, making risky assets less appealing to investors.
Crude halted its rally due to a build-up of US inventories, and this made riskier currencies, particularly those linked to the commodity market, weaker. Consequently, the yen became more attractive as a safe currency. Of course, it is questionable if the Japanese currency is really a safe investment when the Bank of Japan is likely to implement additional stimulus in the future, making the currency less appealing. Nevertheless, traders flock to the yen for now.
USD/JPY fell from 113.22 to 113.06 as of 14:31 GMT today. EUR/JPY dropped from 125.76 to 125.28, trading near the lowest level since June 2013.
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