Yen Weakens as Demand for Safety Wanes

The Japanese yen weakened today as the demand for the safety waned after the Group of Twenty leaders agreed on the measures to battle the budget deficits, boosting the equities.

The G-20 leaders pledged to halve the deficits by 2013 and stabilize debt-to-output ratios by 2016. Angela Merkel, the Chancellor of Germany, commented on the fiscal targets: “Honestly, this is more than I expected, because it is quite specific. It’s a success that industrialized countries as a group accepted this.”

USD/JPY traded near its opening level of 89.31 as of 10:18 GMT after it jumped as high as 89.45.

If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.