Yen Gains After Two Days of Decline

The Japanese yen rose slightly today after losing for the two days on the currency trading market as the U.S. bail-out plans failed to raise the confidence in the high-yielding assets, favoring the yen as the safe-haven currency.
Investors has hoped that the part of the $700 billion plan proposed by the U.S. Treasury Secretary Henry Paulson would go to the car manufacturers (GM, Ford and Chrysler). It turned out that the U.S. lawmakers are probably not going to approve that. The yen also rose against the Australian and the New Zealand dollars as the Asian stock markets declined slightly today.
The Japanese yen still remains in the focus of the Forex traders as the lowest interest rate makes it the one of the safest investments in the troubled financial market. Each bad news for the global economy is a good one for the Japanese currency. Japan’s interest rate is currently at 0.3 percent compared to 1 percent in U.S., 3.25 percent in Eurozone and 3 percent in U.K.
USD/JPY declined from 96.92 to 96.78 as of 7:47 GMT today after reaching as low as 96.33 during the early Asian trading session. EUR/JPY fell from 122.48 to 122.38 after touching its daily low at 121.46. GBP/JPY went down from 145.16 to 145.08, setting the daily minimum level to 143.85.

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