The Japanese Yen reached its highest level in nearly a month versus the U.S. Dollar in trading today, spurred on by investors eager to unwind their money-losing positions. Investors continue to await the results of the U.S. banking sector “stress tests” and the outcome of the continuing sagas of the American big three automakers. As reported at 3:22 p.m. (JST) in Japan, the U.S. Dollar lost .9%, trading at 97.00 Yen, which was only slightly higher from a March 30th low of 96.90 Yen, on the EBS trading platform.
According to some investors, they are reluctant to take more aggressive, i.e. risk-taking, positions until the results of the stress tests have been revealed, and a plan for the recovery of the U.S. automakers is put into play. According to one strategist, the Japanese Yen is the beneficiary to increasing risk aversion. The Japanese Yen is seeing broad gains, as a result. The Australian Dollar lost 1.2% against the Japanese Yen, while the Pound Sterling dropped 1.4%. The single currency Euro slipped .7% versus the Yen, trading at 127.95 Yen, a good distance from 126.10 Yen, a 1-month low touched briefly early in the week.
Unwinding Yen spurs broad gains
DailyForex.com