The Japanese yen, together with the Swiss franc, was the best performing currency this weak as the civil unrest in North Africa and Middle East resulted in the uncertainty among traders and caused the shift of sentiment toward risk aversion.
Tunisian President Zine El Abidine Ben Ali was ousted last month and Egypt’s President Hosni Mubarak resineg on February 11, encouraging protester in other countries of North Africa and the Mideast. Leader of Libya Muammar Qaddafi lost control of most part of the countryâs east, which is rich in oil, to the rebels. April delivery for crude oil jumped 14 percent in New York this week, the biggest advance in two years, to $97.88 per barrel and touched $103.41 on February 24, the highest price since September 2008.
By the end of the week some analysts said that the concerns have eased and now the demand for safety should wane. Such outlook is questionable as the safe currencies haven’t stopped their rally. Let’s wait and see how the events will unfold next week.
USD/JPY dropped from 83.11 to 81.65 this week. EUR/JPY fell from 113.78 to 112.28, while GBP/JPY went down from 134.99 to 131.56.
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