After closing for four days for a national holiday, the Japanese markets reopened and the Yen experienced movement.
The Japanese Yen exchange rate was in the region of 99.1100 Yen to one US Dollar as of 10:40 am GMT
The Yen gained against several of its most traded currency peers, notably strengthening against the US Dollar, following comments issued by Japan’s Finance Minister.
During a news conference Taro Aso stated: ‘The Yen may fall and stocks may rise all of a sudden as a result of that but trends tend to emerge a few months [later]. It has only been a month [since the BOJ stepped up stimulus]. There is nothing particular yet that I need to point out.’
Aso’s comments led investors to bet that the Yen’s recent declines were overdone, and the currency was able to rebound from three days of losses against its US counterpart.
Japanese officials have been keen to downplay suspicions that they are attempting to weaken the Yen with their recent policy adjustments in order to make Japan more competitive on the export market.
Since the Bank of Japan unveiled its unprecedented stimulus measures, triggering widespread Yen declines in the process, nations like South Korea and China have spoken out of the damage a weak Yen could inflict on their economies, although the BOJ’s actions were sanctioned by the Group of 20 (made up of Finance Ministers and central bank chiefs).
The ‘Greenback’ gained on the Yen last week after an unexpectedly strong non-farm payrolls report. Separate data also showed that US unemployment dropped to 7.5 per cent, a four-year low.
Some investors had been hoping that the US Dollar would surge above 100 Yen per Dollar, but so far the level has remained just out of reach.
As currency expert Marito Ueda noted: ‘The wall between 99 and 100 Yen per Dollar is very thick and we need some additional drivers to reach 100. While last week’s payrolls report was strong, investors want to know if the US economy will strengthen further from here.’
The Yen was able to strengthen against the Australian Dollar during the local session as the ‘Aussie’ broadly weakened following the Reserve Bank of Australia’s decision to cut its benchmark rate to a record low of 2.75 per cent.
Other commodity-driven currencies, including the New Zealand Dollar and South African Rand, also softened in the wake of the South Pacific news.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.1100 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 154.0420 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 129.6030 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 84.0255 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.8730 <
(Correct as of 10:40 am GMT)
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