The yen, considered as a refuge investment for moments of instability, rose as the political crisis in Iran deepens, creating tension in the international financial scenario.
The Japanese currency started this weeks session stronger than all of the main traded currencies due to rising concerns about the political crisis around the eventually irregular elections in Iran, which resulted so far in 17 casualties in popular protests since the riots started to take place in the nations capital, Tehran, 2 weeks ago. A World Bank report stated that the global recession will be deeper than it predicted before, and that a flux of capital out of developing nations will increase the world unemployment figures. High-yielding currencies like the Australian dollar and the South African rand lost the most against the yen, in an expected chart movement that follows rising tensions of economic and political aspects.
The economic analysis towards the yen is always favorable when moments of uncertainty about the world economic health appear through reports or official statements, the situation in Iran added to the unexpected World Bank report made the Japanese currency to climb for the first time supported by actual events since the swine flu concerns, around 2 months ago. The yen may continue its climb if negativity on markets increase risk aversion among traders.
EUR/JPY fell to 132.87 as of 10:43 GMT from a week opening price of 134.10. AUD/JPY slid to 76.52 from 77.45.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.
