Buying the Euro and selling the Yen has become extremely popular in the foreign exchange market with traders citing that hedge funds are more bullish on the Euro at any time since July 2011.
“Buying the Euro and selling the Yen is one of the most popular trades in the market as, on the one side, we are seeing a return of investors to Europe and, on the other side, Japan is so keen on seeing a further currency depreciation. We will keep this position until we see any sign of strong criticism from other major economies,” said the head of currency management at Amundi.
The Yen has fallen for the first time in three days against the US Dollar as Japanese officials enforced their position on policies designed to weaken the currency.
On Monday the Asian currency slipped by 0.6% to 93.22 per Dollar and fell 0.8% against the Euro. So far this year the Yen has fallen 6.9% against the US Dollar as investors anticipate the full effects of the monetary stimulus plans advocated by Prime Minister Shinzo Abe. It is though that the Japanese government will attempt to continue to weaken the currency until the end of the fiscal year.
“The Yen’s weakening trend remains extremely solid,” said Ian Stannard, the head of European foreign-exchange strategy at Morgan Stanley. “Comments from the BOJ are reinforcing the market’s perception that Japan is very determined to put the policy in place to bring the economy out of deflation.”
Investors are profiting from an emerging policy divide between Europe and Japan that some economists believe has the potential to trigger a new round of global currency wars.
Current JPY Exchange Rates
The Japanese Yen to Euro exchange rate is currently trading at 0.0080
The Japanese Yen to US Dollar exchange rate is currently trading at 0.0107
The Japanese Yen to Pound Sterling exchange rate is currently trading at 0.0068
The Japanese Yen to Australian Dollar exchange rate is currently trading at 0.0104
The Japanese Yen to New Zealand Dollar exchange rate is currently trading at 0.0128
The Japanese Yen to Canadian Dollar exchange rate is currently trading at 0.0107
The Japanese Yen to Emirati Dirham exchange rate is currently trading at 0.0393
The Japanese Yen to Swiss Franc is currently trading at 0.0098
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