Yen Depressed as FX Market Casts Off Negative Sentiment
The Japanese yen weakened today as the positive mood of Forex traders damped demand for safety provided by the currency. Even the downgrade of Spain’s credit rating was not able to bolster the yen.
The FX market was in risk-on mode by the end of today’s trading session and that put pressure on the yen. The currency is considered to be safe and demand for the yen tends to weaken as mood of traders’ improve.
The Japanese currency was stronger at the beginning of the session as Standard & Poor’s downgraded Spain’s credit rating. S&P lowered the nation’s long- and short-term sovereign credit ratings to BBB-/A-3 from BBB+/A-2. Yet after the initial rally, the yen retreated as traders speculated that the downgrade may encourage Spain to ask aid from the European Union.
USD/JPY rose from 78.17 to 78.35 as of 21:15 GMT today. EUR/JPY ticked up from 100.62 to 101.30, following the decline to 100.12 — the lowest level since October 1. GBP/JPY went up from 125.10 to 125.72 after reaching 124.72 — the lowest price since September 13.
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Earlier News About the Japanese Yen:
- Japanese Yen Gains on Concerns about Global Economy (2012-10-09)
- Japanese Yen Heads Higher on Risk Aversion (2012-10-08)
- Japan's Central Bank Refrains from Additional Stimulus, Yen Steady (2012-10-05)
- Yen Weak Ahead of BoJ Meeting Results (2012-10-05)
- Japanese Yen Drops on Intervention Talk (2012-10-02)