Yen Gains as China’s Economy Slows & Debt Crisis Threatens EU

The Japanese yen gained today as the concerns about the European debt troubles intensified and China continues the attempts to slow its economy, increasing demand for the safer currencies.

The finance ministers from the countries of the European Union are scheduled to meet today in order to formally approve the bailout package for Ireland, which was announced in the previous month. They also will discuss the outlook for Portugal. On the yesterday’s meeting the EU leaders were divided in their opinion about necessity to increase the European bailout fund.

The economists predict that China may increase its interest rates about the same time as the inflation reports will be released, which is scheduled for release on December 13th. The fundamentals seem to favor the risk aversion sentiment at present, which is good for the safer currencies, like the yen and the US dollar.

USD/JPY fell from 82.66 to 82.50 today as of 03:57 GMT. EUR/JPY traded at 110.02 after it fell on the previous trading session from 110.88 to 109.99 and dropped today as low as 109.56.

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