By: DailyForex.com
Demand for the Japanese Yen was significantly higher during the Asian trading session which helped push the currency up 2% versus the greenback. That was largely a factor of the escalation of markets’ concerns over the general health of the global economy. Analysts also say that the chaos in equity markets, both in Europe and the US, has whetted safe haven demand. Also benefitting from market jitters was the Swiss Franc which touched a 4-month peak versus the US Dollar.
As reported at 10:50 am (GMT) in London, the USD/JPY was trading at 111.7040 Yen, a fall of 1.55%; the pair has ranged from a session low of 111.9805 Yen to 113.5570 Yen. The EUR/JPY was also down 1.23% and trading at 126.4050 Yen, with a range of 125.8368 to 128.0885. The USD/CHF was trading lower at 0.9703 Swiss Francs, down 0.37%. The EUR/CHF was also lower at 1.0975 Swiss Francs, a loss of 0.09%.
Markets Expect another BOJ Intervention
The Bank of Japan is undoubtedly disappointed in this result as it has struggled to find a viable way to make the Yen less attractive in order to stimulate growth there. Even the imposition of negative deposit rates hasn’t deterred nervous investors who still feel the Yen is among the safest investments. Analysts believe that the BOJ is likely to intervene yet again. Also benefitting from market jitters was the Swiss Franc which touched a 4-month peak versus the US Dollar.