Japanese Yen Rallies Against US Dollar on Safe Haven Flows

The  Japanese yen today rallied against the  US dollar driven by  the  risk-off market sentiment, which saw the  yen benefit from safe-haven flows. The  USD/JPY currency pair fell to  new multi-week lows as  the  yen kept making gains against the  greenback despite the  DXY’s gains.
The  USD/JPY currency pair today fell from an  opening high of  106.45 to  a  low of  105.98 in  the  American session but was slightly off these lows at  the  time of  writing.
The  yen’s rally defied the  dollar’s gains as  tracked by  the  US Dollar Index, which hit a  high of  100.20 earlier today. Investor risk appetite was negatively affected by  the  ongoing spat between the  US and  China, which started as  a  disagreement about the  origin of  the  coronavirus, but has since morphed into something bigger. President Donald Trump has threatened to  cancel the  phase one trade deal and  to  impose new tariffs on  Chinese goods. The  Trump administration has also threatened to  stop repaying the  debt owed to  China, which has escalated tensions between the  two countries.  
The  dollar got some relief in  the  early American session following the  release of  the  US ADP employment change report, which showed that the US economy shed over 20 million jobs in April. The pair headed lower shortly afterwards amid high demand for the yen.  
The  currency pair’s future performance is likely to  be affected by  geopolitical events and  investor sentiment.
The  USD/JPY currency pair was trading at  106.08 as  at  19:09 GMT, having fallen from a  high of  106.45. The  EUR/JPY currency pair was trading at  114.61, having dropped from a  high of  115.37.

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