JPY Daily News

Yen Rallies on Economic Data and Risk Aversion

The Yen continued its rally yesterday against the EUR and USD, as poor economic data from the U.S. and the Euro-Zone exemplified the down-ridden global economy, fueling trader's risk-aversion. The Yen has seen large gains as traders pour into the Yen, fleeing higher-yielding currencies. Its important to note that Japanese banks have not been hit as hard as American and European banks during this financial crisis, and a large amount of government foreign reserves has helped support the Yen. Some of the Yen's gains came late in Thursday's trading, as traders digested words from U.S. Treasury Secretary Nominee Timothy Geithner. He spoke about different issues relating to the global slump. However, this led investors to have less confidence in the USD vs. the Yen.


Yesterday the USD/JPY closed 46 pips lower at 88.60. This shows that the Dollars decline against the Yen is likely to continue, as currency pair is off nearly 2% for the year. More strengthening of the Yen could lead to increased intervention by the Japanese government to weaken the value of the Yen. A strong Yen is not good for the country's exports and the government is threatening to sell Yen in the open market, in order to drop the value of the nation's currency. If a further inclination and fear of risk ensue, traders may see more weakening of the USD/JPY to a level of 88.00 by the week's end.

Current Time: 05/27 04:49 GMT

Add events to google calendar Mark all Unmark all Print

#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
01/23
	05:00	JPY	BoJ Monthly Report		*	*	*