Japanese Yen Rises as Eurozone Uncertainty Grows
Japanese yen is gaining again, rising as eurozone uncertainty continues to grow. Concerns about what’s next for the eurozone dominate the markets right now, and worries about what could happen next have the yen in high demand as a safe haven.
It’s an interesting time of divergence right now. Normally, when risk aversion is on the rise in currencies, stocks head lower. But stocks are actually higher right now, even as currency demand for safe havens grows. The yen is gaining, and that, in turn, is weighing on companies. Exports are being hurt by the yen appreciation, including companies like Nippon Steel.
Worries about what’s next for the eurozone are weighing on currency traders. There’s just a lot to take in, with a ruling on the European Stability Mechanism expected from the German high court in the next couple of months, as well as Greece’s attempt to renegotiate the terms of its bailout. This week, the ECB is expected to announce policy, along with the BOE and the FOMC.
As a result, the Japanese yen is in favor as a safe haven. It is probably driving Japanese officials crazy, and there is a chance of yen intervention as a result.
At 14:09 GMT USD/JPY is down to 78.2005 from the open at 78.4500. GBP/JPY is down to 122.6615 from the open at 123.4925. EUR/JPY is down to 95.8930 from the open at 96.5040.
If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.
Earlier News About the Japanese Yen:
- Yen Threatened by Deflation (2012-07-26)
- Is More Easing on the Way for the Japanese Yen? (2012-07-25)
- Japanese Yen Surges as Risk Appetite Disappears (2012-07-20)
- Risk Aversion on Forex Market Leads to Gains of Yen (2012-07-14)
- Japanese Yen Higher on Risk Aversion and Higher Yield (2012-07-12)