The Japanese yen was little change today as the impact of the positive revision of Japan’s gross domestic product battled with the influence of stimulus expectations.
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
The Japanese yen gained against its major rivals during the Monday’s trading session following the speech from Haruhiko Kuroda, Bank of Japan Governor.
The Japanese yen weakened a bit today even though economic data released from Japan was relatively good and should have supported the currency.
The Japanese yen was soft today after Haruhiko Kuroda, Bank of Japan Governor, signaled that he is not afraid to add more stimulus if it would be necessary to reinvigorate the nation’s economy.
The Japanese yen was little changed after a report showed that Japan’s deflation persisted despite the efforts of the Japanese central bank.
Riskier currencies reacted negatively to the comments that Fed Vice Chairman Stanley Fischer made on Sunday, but safer ones, like the Japanese yen, were also not immune to the impact.
Japanese yen is higher today, gaining against its major counterparts following last week’s losses. Weak data weighed on the yen last week, but this week the currency’s performance is driven by world events. For now, there is enough concern that the Japanese yen is up mostly across the board.
The Japanese yen traded mostly below the opening level against most major currencies, though there were few exceptions. Economic data released from Japan today was mixed, but the most important GDP report was poor, weakening the currency.
The Japanese yen fell against the US dollar and the Great Britain pound today following yesterday’s big jump.
Japanese yen is gaining ground today, heading higher against most of its major counterparts. The latest expectations for stimulus have changed, and that means that the yen is benefitting from the idea that actual stimulus won’t involve as much as originally expected.