The Japanese Yen has climbed against most of its major peers after traders cited that technical indicators signalled that its recent run of drops was too rapid and the demand for safe havens increased due to the ongoing Eurozone crisis.
The Japanese currency’s decline was accelerated beyond the level traders were expecting as odds increased that political opposition leader Shinzo Abe is favoured to win the next parliamentary election due to be held on December 16th. The increased bets put pressure on the Bank of Japan to implement a further round of monetary stimulus in an effort to revitalise the Asian nation’s economy. The country’s Reserve Bank has been attempting to weaken the currency’s value in a n effort to stimulate exports and get the country back on track and away from a much feared recession.
As a result the Euro limbed to a three week high against the currency as prospects grew that European finance ministers are close to achieving a deal over the debt ridden Greek economy. Demand for riskier assets increased as a result despite the news that the Eurozone has now officially entered a double dip recession.
So far this year the Yen has depreciated by 8.8% making it the worst performing currency out of the 10 developed national currencies tracked by Bloomberg. Japans Abe who leads the Liberal Democratic Party said intervention to weaken the Yen is not working, he said that the Bank of Japan should work at increasing the nation’s monetary base and set clear inflations target.
The Pound to Euro exchange rate is currently trading at 1.2338
The Pound to US Dollar exchange rate is currently trading at 1.6003
The Pound to Australian Dollar exchange rate is currently trading at 1.5323
The Euro to US Dollar exchange rate is currently trading at 1.2966
The Euro to Pound exchange rate is currently trading at 0.8103
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