End of Month Clearing Pushes Yen Higher

Barbara Zigah

By: Barbara Zigah

The Japanese Yen gained broadly in Asian trading today as exporters from Japan sold off their holdings in the U.S. Dollar and the common currency Euro to settle their accounts for the month’s end. The Euro also softened against the U.S. Dollar on continuing debt crisis concerns. As reported at 1:00 p.m. (JST) in Tokyo, the Japanese Yen gained 0.3% against the U.S. Dollar, edging toward a record high of 75.94 Japanese Yen which was struck last month; traders note that the USD/JPY pair are trading in one of the most exceptionally narrow trading bands in history, given that both currencies are perceived by the markets as a safe-haven.

The Euro slipped nearly 0.8% against the Japanese Yen, trading at 103.66 Yen. It also fell against the U.S. Dollar, trading 0.3% lower to $1.3557, retreating from $1.3679 struck after the German Parliament approved the amendment to the EFSF.

Markets are already pricing in a Greek default, though investors are hopeful that the crisis can be averted in Athens as a default would have wide-ranging repercussions as panic spreads throughout the financial system and into the broader Eurozone. Going forward, getting unanimous ratification to the EFSF amendment, which would increase the size of the fund to €2 trillion, will likely be a challenge that must be overcome.

About the Author
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.

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