Yen Slides on U.S. Economy Recovery

After a rebound in the North American consumer confidence, Asian stocks rallied, decreasing demand for safer investments such as the Japanese yen.
The yen lost ground against currencies like the South Korean won and the Taiwanese dollar on speculations that today, a report will indicate a rise in the current home sales in the United States, which would be another evidence that the global slump is having its last days. The Japanese currency did not only decline against Asian high-yielding currencies, but also against the euro and the pound sterling, which have been favored by a rebound in domestic economic data.
Analysts’ opinions relate the revival of the North American economy and the current rally in global equity markets to a risk appetite recovery among investors and traders, creating a cyclic «snowball» effect pushing the markets up. As a natural consequence for the boost in the price of stocks and confidence, assets that had a sharp rise during the worst moments of the global crisis, mainly the yen, are witnessing a downtrend in their attractiveness, and as long as the markets remain bullish, a reversal in their price trend is unlikely to happen.
The USD/JPY currency pair traded at 95.21 from 94.64 in the intraday comparison, GBP/JPY rose to 152.16 from 149.91 following the EUR/JPY trend from a previous price of 131.90 to 132.91.

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