Asian Economy Affects Yen’s Price

The Japanese yen had a negative performance this Tuesday versus most of the Asian and South Pacific key-currencies as evidences suggest that commodity producer countries in the region, as well as emerging markets, are likely to outperform the Japanese economy this year, affecting the yen as well.

Several events are leading traders to believe that Japan’s lack of dynamism in its economy is likely to impact the yen’s performance this year, as other important economies in the region, as South Korea and New Zealand, are showing a better economic performance, allowing their currencies to climb significantly versus the yen today, and in the mid-term, according to some forecasts. Optimism in Asia also rose significantly before a Chinese trade balance report which is likely to show a jump in the country’s exports, declining appeal for the safety profile of the yen.

As pessimistic speculations cooled down in Europe and Asian markets are providing positive data, the yen is lacking reasons to prevent a fall, and this trend is likely to continue, if the economic scenario continues following the current positive trajectory.

NZD/JPY climbed to 63.43 as of 02:47 GMT from a previous intraday rate of 62.82.

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