The Japanese Yen has made gains against many of its most traded peers and has risen close to an eight week against the Euro. The rise comes following a slide in emerging market currencies and the increased demand for safe haven assets.
Investors are turning to the safe haven Yen as the world waits to see if the United States and its allies entangle itself in the Syrian civil war, a move that could dangerously escalate the situation across the Middle East.
“There are a lot of risk factors that the market currently has to deal with, there’s a certain amount for demand for safe havens and that is what’s giving the Yen a bit of support” said Sonja Marten, a currency strategist at Bank AG.
Tensions are high after US secretary of state John Kerry denounced the use of chemical weapons in the savage Syrian civil war. The USA said that it has clear evidence that the Assad regime was behind the attack despite the arrival of UN weapons inspectors having just arrived in the country.
US defence secretary Chuck Hagel told the BBC that US forces are ready to launch strikes if President Obama gives the order. The United Nations has not sanctioned any military action due to the protests of Russia and China.
As the situation in the eastern Mediterranean escalates the Japanese Yen is likely to strengthen further throughout the week as the demand for safe haven assets increases.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.7426
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.6139
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.4177
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.1387
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 87.4933
(Correct as of 14:20 pm GMT)
Comments are closed.