The Japanese Yen has strengthened from its lowest level against the US Dollar since May 2009 as traders bet that the currency’s decline has been too rapid.
As a result the Yen has advanced against all of its major peers, halting its three day decline against the Dollar, it had previously plummeted by 6.4% its most rapid decline since 1988.
“This has really shaken up many people’s attitudes toward the Bank of Japan and the new government,” said Andrew Wilkinson, chief economic strategist at Miller Tabak and Co in New York.
“It feels like it’s gathered a whole new momentum behind it, as the doubters have joined the bandwagon and it’s becoming a self-fulfilling prophecy.”
The Yen began an upward movement after its 14-day relative strength index against the US Dollar dropped below the 30 level that some traders see as a sign that an asset has fallen too fast.
The Yen accelerate its rapid fall after BOJ officials led by recently appointed governor Haruhiko Kuroda said last week that the bank will boost its monthly bond purchases by 7.5 trillion Yen as they attempt to hit their 2% inflation target.
Over the past six months the currency has dropped by 22%, making it the biggest loser amongst the world’s major currencies. In the same period the Euro has strengthened by 2.5% and the ‘Greenback’ by 1.4%.
Current JPY Exchange Rates
The Japanese Yen to Pound Sterling (JPY/GBP) exchange rate is trading at 0.0066
The Pound Sterling to Japanese Yen (GBP/ JPY) exchange rate is trading at 151.1232
The Japanese Yen to Euro (JPY/EUR) exchange rate is trading at 0.0077
The Euro to Japanese Yen (EUR/ JPY) exchange rate is trading at 128.938
The Japanese Yen to US Dollar (JPY/USD) exchange rate is trading at 0.0101
The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading at 99.0079
These exchange rates were correct as of 10:00 am
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