Japanese Yen Weakens as Demand for Safety Wanes
The Japanese yen weakened today as the slower than expected inflation in China and improving economy of Europe decreased demand for safer currencies.
China’s statistics bureau reported that the consumer prices advanced 4.9 percent in January from a year ago, compared with the growth by 4.6 percent in December. The median forecast promised an increase by 5.4 percent. The slowing inflation reduces the probability of further tightening measures by China’s government. The reports from Europe today are expected to show a growth of the gross domestic product and an improvement of the consumer sentiment.
USD/JPY advanced from 83.32 to 83.60 today as of 9:20 GMT after falling earlier to 83.18.
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:
- Japanese Yen Falls as Investors Prefer Risk (2011-02-09)
- Yen Weakens as Economic Recovery Progresses (2011-02-02)
- Yen Slumps After S&P Downgrades Japan's Rating (2011-01-27)
- Yen Tumbles vs. Euro on Signs of Recovery, Rises vs. Dollar (2010-12-17)
- Yen Falls vs. Dollar on Signs of Economic Recovery (2010-12-13)
2 Comments
i am thinking on what grounds the japaneze yen had appreciated so strongly on other major currencies when the Japans domestic economy is so bad and the exports are plunging. It is of my opinion tha this currency is greatly overvalued in an unreasonable way, and the idea in investing in this currency as a safe heaven is to frivolous and unjustified. Japans economy is on the way of no return and i mean catastrophy. The euro zone suffered great losses but in the mean time the zone has established the mechanism to support weak states in a unified effort in support of the single currency, and they are achieving the balance. On the other hand Japan has no mechanisms other than the BOJ interening from time to time to tame an advancing Yen with the fragile spine. The Japaneze Yen has to retreat now against the other major currencies otherwise Japan will collapse economically and the expression that Japan will be known as the country of the setting sun will be a reality. Japan wake up.
When a country invests itself entirely on industry(exports) and depends of the outcome of the eggs in the same basket and does not fore see the future and diversify economy in other areas and systematically avoiding to see the threat of the emerging economies it is doomed to fail.To much pride some times is not the way facing the oncoming challenges and they are coming. Japan wake up.