The Japanese currency fell for a third day today after the the investors gained more confidence that the governments of the developed countries will bailout the troubled banks and will pour out liquidity into the financial markets as needed.
Australian Prime Minister Kevin Rudd said that the government will spend more than $7 billion to the households to support spendings and mortgage payments. U. S. Treasury will buy stakes in the countrys largest banks, while the European governments will offer $1,8 trillion in loans to their troubled banks.
The worlds monetary authorities are trying to support the economy. This effort can only give traders more confidence. And with more confidence traders tend to forget the risk-aversion. Many interesting assets became so cheap in value in U.S., Europe, Great Britain and Australia, that now traders started to convert from the safe yen to other currencies to buy those assets.
USD/JPY rose from 101.98 to 102.39 as of 8:21 GMT today showing the fourth day of growth. EUR/JPY rose from 138.68 to 139.86 — its second gaining day. GBP/JPY went up today from 177.54 to 179.66, advancing for a third day. AUD/JPY gained from 71.13 to 72.78 today — its second day of growth.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.
Be First to Comment