After three days without financial activities in Japan due to a national holiday, speculations suggested that Japanese capital invest abroad was repatriated today before the end of the fiscal year’s first half in Asia’s wealthiest nation, improving the yen’s sentiment in foreign-exchange markets.
The Japanese yen gained today versus most of the main traded currencies after three consecutive days without trading sessions in the Asian country, as Japanese exports fell in August for the eleventh moth in a row, raising risk aversion among traders regionally, that opted for the safer profile of the yen as the first half of the financial year ends in Japan. Higher-yielding currencies in Asia like the South Korean won and currencies struggling with its own domestic issues like the British pound were the biggest losers versus the yen this Thursday.
The relation between the exports decline and the strengthened yen is direct and immediate. The yen rose versus the U.S. in the past quarter, making it harder for Japanese producers, mainly of manufactured goods to compete in the global scenario. Today’s valuation for the yen can be much interpreted as an expected movement following the reopening of trading sessions in Japan, as investors organize their portfolios for the second half of the financial year.
GBP/JPY traded at 146.66 as of 10:42 GMT from a previous rate of 150.07 yesterday. CAD/JPY fell to 84.32 from 85.33.
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