Yen Gains as Traders Require Safety

The Japanese yen surged today as Forex market participants preferred to avoid risk and stick to safer assets, allowing the currency to continue its rally that followed more than a week of losses.

China’s manufacturing was contracting with faster than expected pace. Eurozone manufacturing and services, including manufacturing and service industries in Germany and France, weren’t particularly good either. The reports ignited fear on the Forex market, spurring traders to go for the safety of the yen.

The yen even managed to outperform the dollar, event though it was supported by positive domestic fundamentals. For some time now, the Japanese currency was showing that it has more appeal than the greenback for investors in times of economic uncertainty.

USD/JPY was down from 83.39 to 82.50 as of 23:58 GMT today. EUR/JPY tumbled from 110.19 to 108.96. GBP/JPY slid from 132.34 to 130.55.

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

Leave a Reply

Your email address will not be published. Required fields are marked *