The Japanese yen closed higher against other most-traded currencies, failing to breach the 100 per dollar level and trimming weekly losses, as Forex traders felt aversion to risk amid uncertainty about global economic growth. Concerns about the eurozone are returning and the US economy has its share of problems.
Market participants were less inclined to risk as the trading environment did not look favorable. Stocks dropped as the Standard & Poorâs 500 Index declined 0.4 percent and commodities also retreated. Additionally, the huge drop of the yen spurred some profit taking.
The dollar was weakened by worse than expected fundamentals, including falling retail sales and worsening consumer confidence. This led to failure in breaking the 100 yens per dollar level (last seen in April 2009).
USD/JPY dropped from 99.65 to close at 98.63 today. EUR/JPY declined from 130.55 to 129.23 and GBP/JPY retreated from 153.32 to 151.42.
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