Japanese Yen gains as Investors worry about Global Recession
The Japanese Yen gained against the U.S. Dollar and the Euro today as market concerns about the overall cost of the huge fiscal stimulus packages announced by most central banks, and whether or not they could succeed in preventing global recession, kept the Japanese Yen, a low-yielding currency, high.
The U.S. Dollar dipped broadly because of worries over the state of the American economy and the effect of these rescue plans on the country’s balance sheet. Today’s trading was light due to the Thanksgiving holiday in the U.S. Trading is also expected to be very light tomorrow as most traders will be off for the long weekend holiday.
Yesterday’s attacks in Mumbai, which claimed so many lives, heightened geopolitical fears, which fed into risk-reduction transactions and thus benefited the Japanese Yen. According to Lee Hardman, a currency analyst at BTM-UFJ, underlying conditions remain conducive for better performance from currencies that are lower-yielding.
On November 27, 2008 at 09:10 GMT, the U.S Dollar fell by 0.4% against the Japanese Yen to 95.17; the Euro fell by 0.2% against the Japanese Yen to 122.98. The Euro was up by 0.2% against the U.S. Dollar at $1.2914