The Japanese yen experienced a massive sell-off as Forex traders felt no need for the safe currency in the trading environment that was favorable to risky investments. The currency slumped even against the US dollar.
The traders’ mood was elevated after the US Federal Reserve refrained from tampering its quantitative easing program. For a long time, market participants were concerned about possible negative implications of QE reduction on vulnerable economies of the world. Absence of stimulus tampering was well-received, leading to rally of currencies associated with risk.
In fact, the yen was soft even against safe currencies. It was falling against the franc, which was relatively strong, and even against the weak dollar, a rather puzzling behavior.
USD/JPY jumped from 97.91 to 99.44 yesterday and remained near this level today as of 00:46 GMT. EUR/JPY traded at 134.63, near the highest level since November 2009, after rallying from 132.40 to 134.54. GBP/JPY climbed from 158.08 to 159.42 before trading at 159.48, near the strongest rate since August 2009.
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