The Japanese yen fell from its more than two weeks maximum against the U.S. dollar today as the Japanese investors sought to buy foreign assets after their currency advanced so much yesterday.
The yen declined also against the euro and the Great Britain pound today after reaching a more than 3 months high against both of those currencies yesterday. There is a little hope left that the Bank of Japan will raise the 0.5 percent interest rate soon — definitely not in 2008 and probably not even in 2009.
According to the market analysts, Japanese traders prefer to send their money abroad to get a better return on investment. This factor is stemming the yens strengthening when the currency value reaches a certain limit.
The yen is expect to fluctuate between 105 and 110 per dollar range in the third quarter according to Toru Umemoto, chief currency strategist in Tokyo at Barclays Capital Inc.
USD/JPY rose from 108.47 to 108.88 as of 6:50 GMT today after reaching 108.13l yesterday — the lowest rate since August 5. EUR/JPY went up from 161.53 to 162.09 so far after bottoming at 160.20 yesterday — the minimum rate since May 13. GBP/JPY advanced from 203.63 to 204.29 today after reaching 201.79 yesterday — a level not seen since May 13.
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