Japanese yen is mostly lower today, thanks in large part to the asset buying program from the Bank of Japan from earlier this month. Stocks have been bolstered by the easing in Japan and Europe, and that has reduced the need for safe haven, sending the yen lower.
With the Nikkei above 9,700, there are indications that some Japanese exporters are ready to earn. A weaker yen is better for exporters, giving them an edge in the global markets. Today, the weaker yen is more of a function of general risk appetite. With more good data expected out of the United States, there are some high hopes for what’s next.
The result is that the yen is lower against the US dollar and the UK pound right now. Forex traders are looking for higher yields, and the yen has a very low yield. The exception to yen weakness is in its performance against the euro. Even though some are saying that Greece had no “credit event,” many are still concerned about the restructuring efforts. With the eurozone economy slowing a little, and Greece still an issue, the yen is higher against a struggling euro.
At 14:26 GMT USD/JPY is up to 81.1700, up from the open at 81.1500. EUR/JPY is lower at 108.0190, down from the open at 108.1300. GBP/JPY is up to 129.3830 from the open at 129.1600.
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