The yen, which rallied for almost two weeks versus the pound and the euro, entered the second day of declines against the Eurozone currency, as speculations today led investors to purchase high-yielding assets in equities markets.
The Japanese currency declined versus all 16 major traded currencies as optimism returned to global financial markets on speculations that the Goldman Sachs Group Inc. will reporter bigger earnings today, and New Zealandâs Reserve Bank Governor Alan Bollard stated today that signs of a global economic recovery emerged, bringing confidence back to investors to purchase high-yielding assets in equities markets, damping demand for the safer attractiveness of the yen. Adding to the daily positive news favoring emerging markets and high-yield, a report in Australia showed that business sentiment was rather positive, providing support for the Aussie to climb against the Japanese currency.
Today, the earnings report to be published from Goldman Sachs will be a determinant factor for risk appetite during this week, according to Analysts. This week, provided that risk appetite returns among traders, may experience a significant fall for the Japanese currency, who rallied nonstop for almost two weeks on growing concerns that the global slump will be longer than expected.
GBP/JPY traded at 152.00 as of 11:04 GMT from a previous rate of 147.65. EUR/JPY also climbed from 128.22 to 130.21.
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