Cautious Investors Seek Safe Haven Yen

The US Dollar continued to slide against the Japanese Yen, seen by investors as among the safest currencies to buy in times of economic turmoil. While Wall Street was able to recover yesterday after Monday’s rout, analysts say that investors appear to remain uneasy as US futures decline. Though the stock market sell-off is likely to have abated for now, analysts point out that the likelihood of monetary policy tightening is still a long-term challenge and, as a result, provided a lift to the Japanese Yen against the Dollar.

As reported at 10:18 am (GMT) in London, the USD/JPY was trading at 109.09 Yen, down 0.47% and off the session trough of 108.889 Yen while the peak is at 109.713 Yen. The USD/CHF is trading at 0.93914 Swiss Francs, up 0.36%; the session high is at 0.93931 Swiss Francs, while the low is at 0.93370 Swiss Francs.

Antipodean Currencies Under Pressure

In Australia, the Aussie Dollar was under some pressure as a result of investor risk aversion, with the AUD/USD trading at one point at a low of $0.78620 while the peak is at $0.79090. Currently, the AUD/USD is trading lower at $0.7872, down 0.4565%. The NZD/USD is also lower at $0.7322, down 0.3222%; the pair has ranged from $0.73010 to $0.73460 in today’s trading session. Markets are expecting an interest rate decision from the Reserve Bank of New Zealand later today; analysts expect it to leave the current rate unchanged at 1.75%.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.