Yen Gains on U.S. Mediocre GDP Number

Risk aversion rose today favoring the Japanese currency after a U.S. gross domestic product report indicated a slow down in the quarterly growth, creating speculations that the nation’s recovery will take longer than expected, attracting investors to safer bets.

The U.S. quarterly GDP report indicated a growth of 2.8 percent from a previous report that showed a 3.5 percent increase, evidencing that the economic recovery in the world’s wealthiest nation will not be so fast and consistent as many suggested, forcing investors to protect their portfolios opting for the relative safety of the yen.

USD/JPY traded at 88.50 as of 17:19 GMT from a previous rate of 89.10 in the intraday.

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