Yen Rises as Earthquake Strikes Japan, Gains Limited
The Japanese yen advanced today after an earthquake struck Japan, reminding the catastrophe of 2011, when a tremor was followed by a tsunami and a disaster on a nuclear plant. The yen tends to advance during times of fear.
A tsunami alert was issued today after a magnitude 7.3 earthquake hit the country. The previous disaster caused Japan to shift away from nuclear power, leading to increasing imports of fuel and resulting in the change of the trade balance from net surplus to deficit. The rally of yen was limited by expectations of an intervention from policy makers.
USD/JPY was little changed at 82.37 as of 10:41 GMT today. EUR/JPY fell from 106.79 to 106.49.
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Earlier News About the Japanese Yen:
- Japanese Yen Short Positions Surge (2012-12-03)
- Yen Weakens as Stalling Inflation Spurs Intervention Talks (2012-11-30)
- Traders Turn Attention to USA, Yen Profits (2012-11-28)
- Japanese Yen Gains as Uncertainty Returns (2012-11-26)
- Japanese Yen Mostly Lower as Risk Appetite Returns (2012-11-23)