Yen Appreciates as Tremor Boosts Demand for Safety
The Japanese yen gained today versus all other
The 8.9-magnitude earthquake struck at 14:46 local time at 130 kilometers off the coast of Sendai north of Tokyo, at a depth of 24 kilometers, causing building in Tokyo to shake. The disaster resulted in the surge of demand for safety in Japan and the Japanese currency profited from it as it’s still considered a haven, in spite of problems in the country.
USD/JPY sank from 82.97 to 82.26 today as of 10:22 GMT after it previously rose as high as 83.29.
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 Weakens as Global Economy Grows (2011-03-09)
- Gains of Japanese Yen on Decline of Stocks & Commodities (2011-03-07)
- Japanese Yen — Best Performer This Week (2011-02-27)
- Japanese Yen Regains Strength After Declining (2011-02-25)
- Japanese Yen Profits from Uprising in Libya (2011-02-23)
4 Comments
why did the yen appercaited after the earthquake usally a country’s currencies go down after a natural dissater
Two reasons (or maybe even three):
1. The earthquake reduced risk appetites and JPY usually benefits from a safety investors.
2. The earthquake destroyed some infrastructure and will probably have a negative effect on Japanese economy this and probably next month, but the restoration works will bust the economic output in the following months, eventually overcompensating the losses.
3. Although the earthquake was the largest in Japan’s history, it wasn’t that serious as the country is well prepared for earthquakes. There is less 1000 dead and the impact on the economy is considerably smaller than we could expect from such a quake in some other part of the world.
And what about the nuclear reactor explosion ?
in my mind no one can expect what will happen in the few comming days
JPY like a dead man taking his last breath while he is standing , may be I’m wrong and my be I’m right .
It’s not the reactor that exploded, it’s the outer concrete building around it. It’s not that serious as some might imagine: