Yen Gains on Renewed Crisis Concerns

The yen gained versus several currencies like the euro and the pound as equities markets are ending the week with a rather negative performance, as banks posted losses today.
The Royal Bank of Scotland Plc posted its results for the first half of the current year, indicating unexpected losses, which influenced banking shares in stock markets today, creating a negative sentiment that brought investors to the safety of the Japanese currency, which always benefits from pessimist economic scenarios. Allianz SE, one of the world largest insurance groups also published negative figures, which influenced stock exchanges even further to the red zone. The yen gained versus all 16 major currencies, after a beginning of the week that favored higher-yielding trading options, being emergent market currencies like the Brazilian real, the most profitable investment options.
As long as the economic directions remain unsettled, the risk aversion levels will be determinant for currency markets. Currency strategists affirm that every negative report or corporate account figures will reflect immediately in a bullish sentiment towards the yen, often associated as being the safest refuge in currency markets.
GBP/JPY traded at 159.45 as of 11:24 GMT from a previous rate of 162.15 yesterday. EUR/JPY followed, from 137.45 to 136.76.

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