Japanese yen is rallying today, gaining against high beta currencies as uncertainty about the markets sets in. Yen is gaining as better news in Japan is balanced against efforts at economic stimulus from other economies.
Today, the Bank of Japan lifted its regional economic assessment, citing improvements in employment and investment across all of the country’s regional economies. The news stood in sharp contrast to the announcements of rate cuts in China and by the ECB, as well as an increase in quantitative easing by the BOE.
The news has resulted in a rally for the Japanese yen. Considered a safe haven currency, the yen is demand as Forex traders look for ways to preserve their capital and avoid the losses that come with riskier assets. Yen is down against the US dollar, though. There is a great deal of interest in the greenback right now, and the yen is losing ground to the US dollar as the ADP numbers and jobless claims data show a slight improvement in the employment situation.
At 14:12 GMT, USD/JPY is up to 79.9270 from the open at 79.8900. EUR/JPY is lower at 98.8640, down from the open at 0.8037. GBP/JPY is also lower, falling to 124.0185 from the open at 124.5050.
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