Concern About Greece’s Crisis Pushes Yen Up
The Japanese yen gained today against most other majors as the demand for the safer currencies increased amid rising concerns that the aid, offered by the European Union government, wouldn’t be able to resolve the Greece’s budget deficit crisis.
The uncertainty about the Greece’s situation has worsened after Angela Merkel, the Chancellor of Germany, said that Greece will receive the help from Germany only in case it’ll accept the ”tough” measures, including the budget cuts. The Chancellor also declared: “I’ve said for weeks that Greece must do its homework first.”
With the fears of the impact of the budget shortage crisis, which may also contaminate other countries, on the economies worldwide, the mood of the traders shift to risk aversion. The currencies which are considered safe, like yen or U.S. dollar, gain strength in such environment.
USD/JPY dropped to about 93.13 today as of 15:55 GMT down from its opening rate of 93.96. EUR/JPY traded at 123.32 after opening at 125.71. GBP/JPY traded near 142.46.
If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.
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Earlier News About the Japanese Yen:
- Yen Advances Against Euro on Higher Risk Aversion Sentiment (2010-04-22)
- Yen Declines with Growing Appeal of Higher-Yielding Assets (2010-04-20)
- Safe Currency Needed, Yen is Considered (2010-04-17)
- Yen Drops While Global Recovery Continues (2010-04-14)
- Can Yen Drop as Low as 100 per Dollar? (2010-04-12)
2 Comments
Greece and Spain won’t pay back. The only thing Germans can do is:
REPOSES 170 Leopard 2AEX Battle Tanks from Greece, and 190 Leopard 2A6E Battle Tanks from Spain.
U.S.A must REPOSES 170 F-16 Jet Fighters from Greece, the rest is gone with the wind …forever …
Greece must stop paying lucrative pensions with borrowed money, reform the health care system, and cut 4 times the military budged.
There are many possibilities for Greece to cut spendings and to increase gains. It looks like their government is plain incompetent or is too coward.