The yen lost in the beginning of today’s session in Asia, as stocks climbed in China and South Korea, bringing a certain level of confidence that helped investors to search for higher-yielding options, selling yen-priced assets.
Multiple reasons made the yen to lose versus most of the 16 main traded currencies, as stocks climbed worldwide, providing support for the MSCI World Index to gain for the second day in a row, raising confidence among investors globally. The Norwegian krone was one of the best performers versus the yen today as a report in the country today officially stated that the country is out of recession, gaining 0.3 percent in the second quarter considering the mainland economy and excluding oil and shipping figures. The South Korean won and the South African rand led the gains versus the yen, and the pound is trading near a one-month high versus the Japanese currency as retail sales increased for a second month in the British Isles.
Currency specialists affirm that equities markets performance is affecting the yen towards the end of this week. The yen gained sharply in the beginning of the week as pessimism spread out in markets as signs of a longer recession appeared worldwide, now, as stocks climb, a correction movement can be perceived for the Japanese currency.
EUR/JPY traded at 133.77 as of 11:15 GMT from a previous rate of 132.71 in the intraday comparison.
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