The Japanese yen remains the newsmaker amidst the global financial crisis as it reaches the all-time high levels against the British pound and is outperforming the high-yielding currencies.
After more bad news came out from the banks of the United Kingdom (record high losses of Royal Bank of Scotland Group Plc.), the pound weakened significantly as the government will probably have to pour out even more liquidity into the financial system to keep the things afloat. Such news hurt not only the pound but all the risky currencies out there and, certainly, benefit the yen and the U.S. dollar.
The pound is currently trading near the lowest level against the U.S. dollar since February 2002 and its absolute minimum against the Japanese yen. Analysts believe that the favoring of the yen isnt coming to its end yet, even as the U. S. President-elect Barack Obama is getting inaugurated today — the event that provides the positive expectations to some investors.
USD/JPY rose from 90.55 to 90.68 as of 8:15 GMT today. GBP/JPY declined from 130.25 to 128.01 with the daily low at 127.39 — the new all-time minimum for this currency pair. EUR/JPY went down from 118.29 to 117.42 today.
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