The yen, known for its safety profile, climbed further in the beginning of this week versus the euro as several other currencies as speculations suggesting that protectionist measures may be taken in trade between China and U.S., fact which if confirmed, would slower the global economic recovery.
A rather unusual fact marked the start of this trading week as China entered a dispute with the U.S. regarding an alleged damping of North American automotive products, raising concerns that protectionism may rise between the two countries, providing support for the yen to grow versus most of the 16 main traded currencies, as its safety profile became more attractive this Monday. A decline in Asian stocks today also affected
The commercial issues between the United States and China are being the main factor behind today’s bearish sentiment in equities markets around the world, pushing traders to purchase the Japanese currency. The U.S. dollar may also benefit together with the yen, as these are both the most popular options when traders seek for a relative safety in volatile markets.
EUR/JPY traded at 131.99 as of 9:51 GMT from an opening rate of 132.23 yesterday. GBP/JPY followed, from 151.13 to a current 150.06.
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