Yen Drops for Second Session as Market Sentiment Improves

The Japanese yen dropped today, falling for the second day, as the market sentiment improved a bit due to positive economic data from the United States as well as because of the rally of stocks and crude oil.

US inventories of crude oil shrank unexpectedly, leading to a rally of prices for the commodity. This, in turn, alleviated tensions among traders, driving equities higher. On top of that, US macroeconomic reports improved the market sentiment further.

All in all, it looks like demand for a safe haven is fading away. While the need for safety has not gone completely, now market participants prefer the dollar over the yen as a safe investment.

USD/JPY rose from 119.24 to 119.69 as of 5:49 GMT today. EUR/JPY gained from 141.18 to 141.50 and GBP/JPY advanced from 180.13 to 180.57.

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