The Japanese yen backed off today following the last week’s strong rally but not before touching the highest level in a year and a half against the US dollar and the strongest rate in three years versus the euro.
The yen is the official currency of Japan. It was introduced in 1871 and allowed to freely float at 1973. The yen is the third major reserve currency after the dollar and the euro. The yen is considered a safe currency; therefore it is sought by traders in times of uncertainty and instability. Low interest rates in Japan (near zero), combined with high liquidity of the currency, make the yen used in the practice called carry trade.
Japanese Yen News Archive
Japanese yen is gaining ground against its major counterparts after the Bank of Japan surprised markets by keeping its benchmark rate the same, and staying the course on the current stimulus package.
Japanese yen is heading higher today, gaining ground ahead of an upcoming Bank of Japan meeting. There is a bit of uncertainty about what’s next for the Japanese economy, and what policymakers will do about it.
The Japanese yen sank today amid speculations about possible monetary stimulus from the Bank of Japan. Japan’s economic data was not helpful to the currency as well.
Japanese yen is mostly rangebound today as Forex traders wait for the latest data out of the United States. Yen has been reasonably strong recently and remains relatively strong as uncertainty continues in the market.
The Japanese yen weakened today as the rally of crude oil prices and the subsequent appreciation of commodity currencies gave traders less incentive to stick to the safety of Japan’s currency.
The Japanese yen rallied today as the continuing slide of crude oil prices and concerns about the Chinese economy made traders appreciate the safety of the currency yet again.
The Japanese yen was soft during Wednesday’s trading session and remained weak at the start of Thursday’s trading as signs of improvement in the global economy made the currency less desirable as a safe haven asset.
Japan’s Finance Minister Taro Aso signaled that an intervention into the currency market in order to weaken the Japanese yen would not be against the agreement of the Group of Twenty. Unsurprisingly, the yen dropped after such remarks.