The Japanese yen surged today, jumping more than 1 percent and reaching the highest level in seven weeks against the US dollar and the euro. The trading environment on the Forex market favors safer currencies, and so happens that the yen is one of such currencies.
Concerns about developments in Europe and China are driving investors to seek safe haven assets in order to protect themselves against risk. The yen is traditionally a reasonable choice for those market participants who seek safety. Additionally, the Japanese currency is in demand from speculators involved in carry trades, though recently carry traders were favoring the euro due to the extremely low interest rates offered by the European Central Bank.
USD/JPY sank 1.5 percent from 122.53 to 120.75 as of 17:48 GMT today. EUR/JPY tumbled 1.1 percent from 134.90 to 133.44.
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