Yen Profits from Risk Aversion

The Japanese yen profited from the risk-negative market sentiment, rising against its major counterparts. The currency opened sharply lower versus the US dollar but was able to slowly rise, though it still trades below the Friday’s close.

The Japanese yen, being considered a relatively safe investment option, gained with the help of the risk-aversion market sentiment, created by last week’s comments from the Federal Reserve. Of course, this also led to the lower opening versus the dollar, but the yen managed to bounce during the trading session. The Japanese currency was especially strong versus the euro as European Central Bank President Mario Draghi said during his speech at the Jackson Hole Symposium that the ECB is ready to use unconventional means to stimulate the struggling eurozone economy.

USD/JPY was down from 104.26 to 104.04 as of 13:12 GMT today, reaching the low of 103.86 intraday. The currency pair closed at 103.95 on Friday. EUR/JPY declined from 137.58 to 137.25.

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