Traders See No Reasons to Buy Yen

The Japanese yen weakened today, trading near the lowest level for this year against the euro and reaching the weakest rate in more than seven years versus the US dollar. Traders have plenty of reasons to sell the yen and few to buy the currency.

Prime Minister Shinzo Abe will speak at a press-conference next week, talking about the delay of the next sales tax hike. He may announce dissolution of the parliament. Meanwhile, Japanese stocks are on the rise due to extra liquidity, provided by monetary stimulus from the central banks of the eurozone and Japan, as well as on the back of optimism about the US economy. All these factors make the yen less attractive in its role of a safe haven.

USD/JPY was up from 115.76 to 116.66 as of 13:57 GMT today, trading near the highest level since October 2007. EUR/JPY advanced from 144.40 to 144.87, touching the high of 145.05 intraday — the strongest rate since December 12.

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