The Japanese yen reached a multi-month lows against other currencies, including the dollar and the euro, today, but surged after stocks dropped on concerns that problems in Europe will resurface again.
Moody’s Investors Service warned that probability of a default in Greece “remains high”. The Standard & Poor’s 500 Index declined 0.5 percent, the Stoxx Europe 600 Index went down 1 percent and the MSCI Asia Pacific Index lost 0.7 percent today. It looks like optimism has left the Forex market and traders again are making bid for safety.
USD/JPY slumped from 81.22 to 80.31 as of 15:19 GMT today after it touched 81.66 — the highest rate since May 31. EUR/JPY went down from 109.40 to 107.56 following the jump to 109.95 — the high not seen since October 31.
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