Forex News

The yen started this Thursday’s session in Asia gaining versus currencies regionally and globally, on speculations that local investors are repatriating capital before the Japanese fiscal year ends in the following weeks.

The Japanese yen had a negative performance this Tuesday versus most of the Asian and South Pacific key-currencies as evidences suggest that commodity producer countries in the region, as well as emerging markets, are likely to outperform the Japanese economy this year, affecting the yen as well.

The yen was one of the biggest winners in the beginning of this Thursday’s session in Asia, as risk aversion surging from Europe is attracting investors to the safety profile of the Japanese currency.

The Japanese yen, known as the safest bet in forex markets during times of uncertainty, profited today from negative releases in both Europe and North America, allowing the Asian refuge currency to post the sharpest gains versus currencies tied to growth.

The Japanese yen started this Tuesday’s session down versus most of the 16 main traded currencies as concerns regarding the country’s deflation are fueling speculations that interest rates will be maintained at a record low for a longer period.

The yen started this Thursday losing versus the main South Pacific currencies as reports in the region brought risk appetite high in foreign-exchange markets, after confidence that the economic pace will accelerate in Australia and the New Zealand.

The yen was the most affected currency by a new wave of optimism started by EU officials statements suggesting that the bloc will help Greece financially to solve its public debt issues, losing specially versus higher-yielding currencies and the euro.

The yen dropped started this Wednesday dropping versus most of the 16 main trading currencies as renewed risk appetite declined attractiveness for the Japanese currency, known for its safety profile that traders tend to abandon as market sentiment improves.

The Japanese currency ended a rally fueled by risk aversion as a Federal Reserve statement published yesterday brought optimism to financial markets globally, decreasing appeal for refuge investments available in Japan, specially versus high-yielding currencies.

The yen continued to profit from a favorable scenario for refuge currencies as traders are increasingly concerned regarding the economic trends for 2010, as requirements for bank loans are becoming stricter, fact which could slow down the growth pace in most of the world’s wealthiest nations.