Yen Attempts to Rally on Risk Aversion
The Japanese yen was attempting to rise today against other most-traded currencies as risk aversion prevailed on the Forex market. The currency failed to keep gains versus the US dollar, but maintained rally against the Great Britain pound.
Geopolitical tensions in Middle East continue to drive markets and this increases bid for safer assets. The yen, being one of such assets, excels in such environment, though its performance today was not as good as one might have expected. The Japanese currency was also attractive because of its role in carry trade as central banks around the world are thinking about slowly tightening their monetary policies somewhere in the future, while Japan will likely stick to accommodative policy for a long time.
USD/JPY was up from 96.99 to 97.42 as of 12:24 GMT today. At the same time, GBP/JPY erased the rally from 150.82 to 151.44 and dropped to 150.53.
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