The Japanese yen was soft today as markets calmed after fears of the Turkish financial crisis eased. With that said, the currency trimmed losses against some of its rivals and erased them against the euro completely.
The yen was the strongest currency during the height of risk aversion, therefore it is reasonable for the currency to demonstrate the biggest pullback when the market sentiment improved. It is important to remember that the crisis is not resolved, meaning that the yen may yet rise to new highs in case of another surge of fear. For now though, the currency trades as one of the weakest on the Forex market.
Surprisingly, another loser today was the Australian dollar. While most other riskier currencies rebounded after the previous losses, the Aussie was weighed down by the underwhelming macroeconomic releases in China.
As for Japan’s economic data, the revised estimate of industrial production showed a drop by 1.8% in June, year-on-year. That was a better reading than a fall by 2.1% showed in the preliminary report.
USD/JPY climbed from 110.64 to 111.22 as of 17:52 GMT today. EUR/JPY traded at 126.16 after opening at 126.23 and rising to the daily high of 126.99. GBP/JPY was up from 141.26 to 141.47 but retreated from the daily maximum of 142.47.
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