Japanese Yen Remains Stronger Against European Currencies
The Japanese yen continues to appreciate against European currencies, thanks to the uncertainty in Europe. Concerns about what’s next for the eurozone are weighing on risk, and the Japanese yen is once again being used as a safe haven currency.
Japanese yen is heading higher against European currencies like the euro and the Great Britain pound today. Once again, yen is receiving a boost as uncertainty in Europe — especially over Greece — dominates financial headlines. Everyone is waiting to see whether the European Central Bank will provide more stimulus and funding, as well as waiting on new Greek elections next month.
Japanese Finance Minister, Jun Azumi, blames the uncertainty in Europe for the strengthening Japanese yen. Leaders aren’t happy about the yen’s appreciation because they prefer the weakness that provides an edge in global trade. Instead, they are stuck with a yen that continues to appreciate, even after the recent credit downgrade from Fitch.
For now, Forex traders just want to favor a currency that provides a little stability and safety. It’s not really about growth right now; just about capital preservation. And the Japanese yen is well known for its stability.
At 12:51 GMT USD/JPY is lower at 79.5840, down from the open at 79.6110. EUR/JPY is down to 99.5965 from the open at 99.7530. GBP/JPY is down to 124.7030 from the open at 124.7160.
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Earlier News About the Japanese Yen:
- Bank of Japan Inaction Helps Yen (2012-05-23)
- Yen Slides as Fitch Downgrades Japan (2012-05-22)
- Yen Falls vs. Majors as Traders Anticipate Intervention from BoJ (2012-05-16)
- Japanese Yen Strengthens on Risk Aversion (2012-05-09)
- Japanese Yen Mixed in Forex Trading (2012-05-04)