The Japanese currency started this week falling versus most of the 16 main traded currencies after one of the main European electronics producer posted unexpected quarterly profits, inducing traders to opt for higher-yielding positions in foreign-exchange markets.
Royal Philips Electronics NV, the biggest European electronics producer based in the Netherlands, posted a better than expected profit for this year’s third quarter, surprising traders positively, damping demand for the safety of the yen, which dropped mainly versus currencies in emergent-markets like the Mexican peso, and high-yield commodity linked currencies like the Canadian and the Australian dollar, being the latter the best performing currency in traders markets in 2009 until this moment. The yen also lost versus the greenback influenced by the same factors, since the yen is considered the safest investment in currency markets, being impacted today by an increased risk appetite among traders.
Analysts were expecting the Dutch company to post losses, but the actual results surprised traders with optimism, provoking an exodus of capital from Japan towards riskier positions around the world, following the current trend of optimism caused by economic recovery evidences which have surged globally, specially this month as Australia was the first country to raise its national benchmark interest rates.
EUR/JPY traded at 133.24 as of 10:27 GMT from a previous rate of 132.18 when markets opened yesterday. AUD/JPY followed, trading at 81.72 from 81.22.
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