The Japanese yen sank today, reaching the lowest level since 2009 against the euro and the weakest rate since 2008 versus the Great Britain pound. The market sentiment was mildly positive, making the currency unnecessary in its role of a safe asset.
The Bank of Japan monetary policy minutes suggested that inflation will not reach target by the time set by the central bank. At first, the yen was not bothered by the news. But it looks like now traders are weighing probability of additional monetary easing from the BoJ and the currency suffers from this.
Investors’ mood was fairly positive due to good news from Europe. There is still probability of stimulus tampering by the US Federal Reserve, but for now it is not enough to make safety of the yen desirable to traders.
USD/JPY jumped from 101.27 to 102.24 as of 22:46 GMT today. EUR/JPY surged from 137.44 to 138.78 — the highest rate since June 2009. GBP/JPY climbed from 164.20 to 166.52, touching the strongest price since October 2008.
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