The Japanese yen performed far better today than yesterday. The reason for this was another huge drop of Chinese stocks that drove investors to seek safe assets.
The benchmark Shanghai Stock Exchange Composite Index sank more than 6 percent during the current trading session, reinforcing fears of slowdown of the world’s second biggest economy. The news prompted market participants to seek out safe options, like the yen and Swiss franc. This allowed the yen, which had not been faring well yesterday, to gain ground during Tuesday’s trading (though not against the very strong Great Britain pound).
USD/JPY fell from 124.38 to 124.27 and EUR/JPY ticked down from 137.78 to 137.46 as of 10:38 GMT today.
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