Forex Traders More Cautious Today
Loonie Higher vs. Euro, Lower vs. Yen as Concerns for Europe Return
Yen Continues to Strengthen
Japanese yen continues to strengthen, prompting Prime Minister Yoshihiko Noda to assure Japan’s parliament that leaders are ready to intervene if it becomes necessary.
Japan prefers a weak currency, since it provides an advantage in the realm of exports. Indeed, a number of Japanese companies were hit hard in Quarter 3 due to a stronger yen. Japanese leaders are becoming nervous about how a stronger yen could slow exports, as well as hinder reconstruction efforts in areas hit by the earthquake and tsunami last March.
In addition to vowing to intervene if necessary to keep the yen from appreciating much further in Forex trading, Japanese leaders also announced that it will add a new tax to help with reconstruction in
For no, the yen is receiving support in currency trading as a safe haven. With the euphoria over yesterday’s eurozone announcement of a plan to contain the sovereign debt crisis fading, Forex traders are looking for safety. Indeed, many are now concerned that the eurozone plan doesn’t address
At 16:28 GMT, USD/JPY is losing ground, falling to 75.73 from the open at 75.94. EUR/JPY is also lower, falling to 107.17 from 107.55. GBP/JPY is down to 122.12 from the open at 122.27.
If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.
Tags
Categories
Earlier News About the Japanese Yen:
- Japanese Yen Strengthens Against Majors (2011-10-25)
- Japanese Yen Surges in Forex Trading (2011-10-21)
- Japanese Yen Lower; Japan Considers Quake Bonds (2011-10-20)
- Yen Gains, Strengthened by Europe's Woes (2011-10-19)
- Japanese Yen Heads Higher on Risk Aversion (2011-10-18)
2 Comments
OK… one news story says that it is “speculator” driving the yen up; then the next one says the yen is appreciating because it is “Safe”. SO, tell me, based on the latest books I read, Japan in fact is not “safe” when looking at the ratio of budget deficit to GDP, when looking at unfunded liabilities, the fact that they are no longer net savers and have not been for years, tehy have an aging population which will put increasing demands on retirement and healthcare benefits and on and on. So, can anyone shed light on how if this is true can the Yen be a safe haven?
It’s considered “safe”, which also busts the demand from “speculators” when the risk-aversion increases. The huge debt isn’t problem for Japan because of extremely low interest rates on that debt. In fact, it’s a positive thing for them to increase their debt now, at near-zero price.