The Japanese yen went down rapidly against the other currencies today as the European and Asian stock markets rallied on expectations for the effect from the global anti-crisis measures.
The bail-out of the Detroit automakers has been almost approved in U.S. and that induces some hopes for the crisis easing in the near future. Better financial conditions benefit such currencies as the Australian and New Zealand dollars and reduces the attractiveness of the safe «haven» currencies — U.S. dollar and Japanese yen.
While the short-term loans provided to the U.S. auto giants arent enough to save them in long-term, the positive moment is easily caught up by the stock markets. Stocks in their turn have a strong influence on the currency flows — turning them out of the Treasury notes and the Japanese bonds.
During the Asian trading session the Japanese stocks benchmark index Nikkei gained 5.19 percent today. The German DAX is currently trading with a 5.66 percent growth.
USD/JPY rose from 92.71 to 93.24 as of 10:04 GMT today, reaching as high as 93.89 earlier today. EUR/JPY went up from 117.90 to 120.06, while GBP/JPY rose from 136.46 to 139.21 after reaching a daily maximum at 140.71 today.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.
