Forex Broker: Yen Hit 5-Week High

[amandalanlulei]

Forex Broker---- Japan’s economic situation remains precarious. According to the data released by Japanese government on June 29th, Japanese unemployment rate has been rising for three months. Meanwhile, its industrial production data unexpectedly declines. The two data are both worse than expected.

These data has investors worried that Japanese economic rebound due to its export may slow down. Japanese stocks get blown by this negative pressure and fell for nearly 1.3%. At the same time, risk aversion surges, making Japanese yen the biggest beneficiary. At June 29th Asian trading hours, Japanese yen rose 5-week high against the dollar. Yen/ euro forex rate rose to 3-week high.

Japan’s Nikkei tumbled 1.27% to 9570.67 points, lowest since June 10th. The yen, however, rose all the way to the benefit from risk aversion. At Asian trading hours, the yen rose over 0.3% against the dollar to the 5-week high, at 89.06 yen. Yen/ euro forex rate rose for around 0.3%, and hit 3-week high of 109.28 yen.

A forex strategist of Sumitomo Mitsui Bank in Tokyo said, “Stocks and forex market have just entered a negative spiral, but I don’t think this is the beginning of a long-term trend.”

There are also analysis institutes believing that Japanese debt problem would be a big future risk. Moody’s Investors Service stated on June 28th that if Japanese government could not abide by the revised public fiscal plans, its sovereignty ratings might face downgrading in the few years to come.---- Forex Broker: Ikonfx

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By Amanda