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Safe Haven Demand Helps Japanese Yen

September 12, 2013 at 13:33 by Miranda Marquit

Scattered 10,000-yen notesJapanese yen is gaining ground today as risk aversion makes an appearance and low beta currencies are sought for their safe haven qualities. With concerns over the possibilities in Syria, and with equity losses, Forex traders are turning to safety.

Japanese yen is higher almost across the board today as risk aversion sets in. Overnight losses in Japanese stocks are prompting gains for the yen as traders look for safe haven. Japan saw disappointing figures for core machinery data. The figures was flat at 0.0 per cent, when many thought to see an increase. As a result, investors are no longer as optimistic about the recovery of the Japanese recovery.

Also causing some issues is continued uncertainty about Syria and other matters. Worries about the somewhat slow growth of economies around the world continue to weigh on risk appetite, and there is a demand for safe have currencies like the Japanese yen.

There are thoughts that the yen will weaken again in the future. With more stimulus measures likely from the Bank of Japan, and with government spending as a result of the 2020 Olympic Games.

At 13:30 GMT USD/JPY is down to 99.4570 from the open at 99.8930. EUR/JPY is down to 131.9410 from the open at 132.9555. GBP/JPY is down to 157.1200 from the open at 158.0150.

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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