The Japanese yen gained today against most other majors as the demand for the safer currencies increased amid rising concerns that the aid, offered by the European Union government, wouldn’t be able to resolve the Greece’s budget deficit crisis.
The uncertainty about the Greece’s situation has worsened after Angela Merkel, the Chancellor of Germany, said that Greece will receive the help from Germany only in case it’ll accept the “tough” measures, including the budget cuts. The Chancellor also declared: âIâve said for weeks that Greece must do its homework first.â
With the fears of the impact of the budget shortage crisis, which may also contaminate other countries, on the economies worldwide, the mood of the traders shift to risk aversion. The currencies which are considered safe, like yen or U.S. dollar, gain strength in such environment.
USD/JPY dropped to about 93.13 today as of 15:55 GMT down from its opening rate of 93.96. EUR/JPY traded at 123.32 after opening at 125.71. GBP/JPY traded near 142.46.
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