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Yen Continues Downfall

February 12, 2013 at 4:20 by Vladimir Vyun

Scattered 10,000-yen notesThe Japanese yen posted the biggest drop in more than two weeks yesterday and retained the drop today as comments of various politicians suggested that the currency will be allowed to fall further.

Haruhiko Kuroda, a potential contender for the Bank of Japan governor, said that an accommodative monetary policy can be justified for 2013. The statement followed the comments of Japanese Finance Minister Taro Aso, who said that the currency had fallen too fast. The yen paused its downfall after Taro’s words, but yesterday the sentiment changed yet again and the currency resumed its decline.

Additionally, US Treasury Undersecretary Lael Brainard said that she supports Japan’s attempts to reignite growth. The Group of Twenty meeting starts this week and it is useful for Japan to have support from other countries as there are concerns that the Asian nation may be labeled a currency-manipulator.

USD/JPY traded at 94.23 as of 4:20 GMT today after climbing from 92.70 to 94.29 yesterday. EUR/JPY traded near 126.15 after advancing from 123.92 to 126.38. GBP/JPY went up from 146.43 to 147.64 on yesterday’s trading session and traded at about 147.48 on today’s session.

If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

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