Japanese Yen Drops on Expectations of Stimulus
Expectations that stimulus measures will be forthcoming, and that central banks around the world will act to boost the global economy and stave off a eurozone collapse, are helping high beta currencies today, and sending the Japanese yen lower.
Yen is falling back as central banks around the world adopt the stance that they will do what they can to keep major economies from becoming victim to serious slowdowns. This news is helping risk appetite, and sending Forex traders to assets like the euro and the pound. The expectation that economies will be supported is encouraging investment, and traders are ready to take a risk.
Without the need for the yen as a safe haven, the Japanese currency is sliding back. With indications that the US economy continues to move toward some measure of recovery, there are hopes that the global economy will pick up the pace as well. However, even with the good news and the promises by central banks, it could all come to naught.
Bank of Japan officials remain on the alert for a reversal, and for the yen to appreciate again if matters change course and Forex traders begin looking for safe haven.
At 14:53 GMT USD/JPY is higher at 78.8255, up from the open at 78.3200. EUR/JPY is up to 97.2595 from the open at 96.5800. GBP/JPY is up 123.6865 from the open at 122.8350.
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Earlier News About the Japanese Yen:
- Yen Loses Ground as Japan's Economic Growth Slows (2012-08-13)
- Yen Advances as BoJ Refrains from Stimulus (2012-08-09)
- Japanese Yen Gains the Upper Hand as Traders Show Caution (2012-08-08)
- Yen Gains Even as Risk Appetite Persists on FX Market (2012-08-07)
- Risk Aversion Sends Japanese Yen Higher, Officials Fret (2012-08-02)