By: Barbara Zigah
Concerned investors, worried that the recent rally in high-risk currencies has reached an end, moved back into the safe-haven of the Japanese Yen, pushing the Yen up broadly in Asian trading today. As reported at 2:45 p.m. (JST) in Tokyo, the Japanese Yen rose to 93.64 Yen, a rise of .7% against the U.S. Dollar, and close to 93.42 Yen, a 1-month high touched on last week on the EBS trading platform. The Yen also did well against higher-yielding currencies such as the single currency Euro and the Australian Dollar. Versus the Australian Dollar, the Yen gained .6% to trade at 77.39 Yen, and versus the Euro, the Yen rose to 133.70 Yen, an increase of .5%.
Investors continue to closely watch Chinese share prices for clues as the direction of the Chinese economy. Analysts are concerned that plans to address industrial overcapacity will ultimately have a negative effect on Chinese equities, albeit short-term. These concerns are helping to support the low-yielding Japanese Yen and other low-yielding currencies, which generally rise versus higher-yielding currencies whenever the global economic outlook deteriorates. According to one senior forex trader in Japan, the primary worries continue to be how well the global economies will fare once the various stimulus packages are withdrawn or concluded.
Japanese Yen Rises Broadly as Risk Rally Wanes
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.