Japanese officials are fretting about the strength of the Japanese yen again. Recent risk aversion is sending the yen higher against other majors today. Concerns about the eurozone are on the rise yet against, and the yen is being used as a safe haven.
After the strong statement recently, many Forex traders had expected some decisive action from the European Central Bank. However, when it came right down to it, today’s policy announcement by ECB President Mario Draghi was disappointing. No announcement on debt intervention was made, and that is sinking markets, and encouraging Forex traders to turn to low beta currencies like the yen.
Japanese officials are fretting over the strength of the yen, which is what they do anytime the yen surges in popularity. The Japanese prefer a weaker yen, since it gives them an edge in global trade. Bank of Japan board member Yoshihisa Morimoto said that rebuilding from last year’s devastating earthquake and tsunami is helping the economy, but the strong yen could yet wreck all.
Once again, there is speculation that the Japanese will be willing to intervene in an effort to weaken the yen.
At 14:18 GMT, USD/JPY is down to 78.2330 from the open at 78.4220. EUR/JPY is down to 95.4730 from the open at 95.8910. GBP/JPY is down to 121.6270 from the open at 121.8350.
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