The Japanese Yen struck a 2-week peak against the U.S. Dollar as investors sought the safe haven currency in the wake of disappointing economic news from China which resulted in a fall in commodity prices; a pair of deadly explosions at the Boston marathon also put a dent in risk sentiment. Also providing some downside momentum for the Yen was the recently released report by the U.S. Treasury Department which expressly stated that the Japanese government’s policies would be scrutinized carefully to ensure that there was no intentional currency devaluation aimed at gaining a competitive edge for the country’s exports.
As reported at 10:19 a.m. (JST) in Tokyo, the USD/JPY pair was trading at a 4-week low of 95.67 Yen before recovering to 96.84 Yen; since last week, the pair has better than 3% of its value and fallen steadily from a 4-year peak of 99.95 Yen, still unable to touch the psychological barrier of 100.00 Yen. With the G20 meeting looming, investors are avoiding a Yen sell off for the time being, but most market players still anticipate that the elusive 100.00 level will be hit before too long given the Bank of Japan’s easing commitment.