Yen Rallies to Highest Since 2013 vs. Euro

The Japanese yen rallied today, touching the highest level since June 2013 against the euro. The reason for the rally is the retreat of the US stocks and the comments from Koichi Hamada, an adviser to Prime Minister Shinzo Abe on monetary policy.

Hamada said in the interview with Bloomberg:

I don’t think it’s a bad thing to send a signal that selling of the yen is coming closer to its limit bit by bit

He also stated that the yet at the 120 per dollar level is “considerably weak” and that “there’s no need to force inflation to 2 percent.”

The Japanese currency rallied during the current trading session, supported by the comments, but is struggling to extend gains.

USD/JPY was down from 120.11 to 119.84 as of 11:34 GMT today, and its daily low was at 19.55. EUR/JPY fell from 126.91 to 129.09 intraday but bounced to 126.75 as of now.

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