The Japanese Yen regained lost ground on Wednesday now that investors’ risk appetite has improved. The Yen had recently notched its largest 2-day decline in nearly 2 years, losing 4% versus the US Dollar, just since the beginning of the trading week. Monday’s news of the appointment of a new UK Prime Minister, and expectations of an upbeat US labor report, have helped to assuage investors and calm their collective uncertainty. The Yen did appear to hit a speed bump on the road higher after investors’ hopes of “helicopter money” to fight deflation were dashed by Japan’s Chief Cabinet Secretary.
As reported at 11:27 am (BST) in London, the USD/JPY was trading at 105.6510 Yen, down 0.09%. The EUR/JPY was up 0.05% to trade at 115.9300 Yen.
Aussie and Kiwi Lifted as Risk Sentiment Wanes
Antipodean currencies were also built up on improved sentiment, with both the Aussie and Kiwi Dollars rallying back from recently struck multi-month lows. The AUD/USD was up 0.06% to trade at $0.7624 while the NZD/USD was flat at $0.7292.