Forex News

The yen ended the week with a very positive performance versus most of the main traded currencies as a new wave of risk aversion brought traders to purchase assets in the Asian country, since the yen is well-known for being the safest refuge currency for times of uncertainty in trading markets.

The yen outperformed most of the 16 main traded currencies after the U.S. President affirmed that financial institutions must have their operations regulated in order to avoid speculations, raising risk aversion in all trading markets in the world.

Demand for safety rose today as concerns among investors that Chinese lending limits announced this week by the nation’s government may impact the global economic performance, allowing the yen to beat all of the main traded currencies in foreign-exchange markets today.

The Japanese currency declined in the beginning of this Thursday’s session on Australia’s better than expected employment data, which increased attractiveness for riskier assets as the South Pacific economy recovery improves confidence among traders.

Risk aversion declined significantly today after China set a new reserves requirements for banks in the country, allowing the yen to outperform all of the 16 main traded currencies in foreign-exchange markets, as pessimism surged.

The yen declined today versus virtually all of the 16 main traded currencies as investors opted for higher-yielding currencies betting on the global economic recovery for 2010, abandoning yen priced assets after Japan’s Finance Minister Hirohisa Fujii resigned today.

The yen managed to gain versus most of the 16 main traded currencies today after a negative U.S. housing report brought risk aversion up among investors, which opted for the safety provided by the Japanese currency.

The yen declined versus most of the 16 main traded currencies today on a risk fueled session that favored higher-yielding currencies and the U.S. dollar, as favorable reports in the country continued to boost appetite for the greenback.

The Japanese currency lost versus most of the 16 main traded currencies this Monday after a report published this morning in Japan indicated a higher monthly industrial production, damping demand for refuge currencies like the yen, and the Swiss franc.

The Japanese currency posted a poor performance this week as the economic recovery prospect is not leading traders to believe that interest rates will be raised from an all time record low, decreasing significantly the attractiveness for the Asian nation’s currency.