The Japanese yen ended Friday with gains as risk aversion attracted investors to the perceived safety of the currency, allowing the yen to move away from multi-year lows that it has reached recently.
Japanese Yen JPY
Central Bank: Bank of Japan
Interest Rate: 0.10%
Public Debt to GDP Ratio, 2011: 211.7%
Trade Balance, 2011: -$20.4 bln.
Inflation, 2011: -0.3%
Global reserve currency
Safe haven currency
Factors of Weakness
Loose monetary policy
Frequent currency interventions
The yen is the official currency of Japan. It was introduced in 1871 and allowed to freely float at 1973. The yen is the third major reserve currency after the dollar and the euro. The yen is considered a safe currency; therefore it is sought by traders in times of uncertainty and instability. Low interest rates in Japan (near zero), combined with high liquidity of the currency, make the yen used in the practice called carry trade.
Japanese Yen News Archive
May 25th, 2013 at 0:56
May 23rd, 2013 at 9:36
The Japanese yen climbed today, posting the biggest gain against the euro in five weeks, as Chinese manufacturing and speculations about the future monetary policy of the US Federal Reserve made investors nervous and unwilling to risk.
May 21st, 2013 at 16:06
Japanese yen is mostly lower today, following an earlier rally. Comments from a government official sent the yen a little higher against its major counterparts, but now the yen is settling down into weaker territory as the fundamentals are considered.
May 20th, 2013 at 7:42
The Japanese yen gained today as politicians were worried that the excessive drop of the currency may be not that beneficial for the country and may actually hurt the economy.
May 16th, 2013 at 12:38
The latest GDP reading for Japan has been released, and it shows an improvement for the first quarter of 2013. This news hasn’t served to strengthen the yen, however. Instead the Japanese currency is down against its major counterparts on expectations of continued easing.
May 10th, 2013 at 22:12
The Japanese fell today against all other most-traded currencies and dropped below the 101 per dollar level on positive data from the United States and signs that Japanese investors buy foreign bonds.
May 09th, 2013 at 16:32
Japanese yen is mostly weaker today, dropping as the prospects of long-term weakness weigh on the Asian currency. With a plan in place to boost the monetary base, and with no one in the G-20 trying to rein in Japan, it looks as there is a clear field for yen weakness.
May 07th, 2013 at 15:31
Japanese yen is gaining ground today, thanks to the latest comments from Japan’s Finance Minister. Some Forex traders now believe that the recent yen weakness was overdone, and that some strength is in order. As a result, yen is gaining against many of its major counterparts.
May 02nd, 2013 at 14:11
Yen is mostly lower today against its major counterparts following the latest release of BOJ minutes. Even though there are some concerns about the aggressive monetary easing policy being pursued by the central bank, most of the policymakers are expressing confidence in the bank’s decision.
April 30th, 2013 at 15:27
Japanese yen is gaining ground today, heading higher against the dollar and making some inroads against the euro. Economic data out of Japan is having an effect as well.