Yen Climbs on Finance Minister Statements

The yen managed to climb versus several main traded currencies and hit the highest level versus the U.S. dollar after Japanese policy makers affirmed that a strong currency will not impact the country’s economy negatively.
The Japanese currency gained confidence today climbing versus the greenback and the euro after the nation’s Finance Minister Hirohisa Fujii affirmed that the yen is currently fluctuating withing comfortable parameters, helping investors to purchase yen-price assets as these statements could be interpreted as a negative sign from Bank of Japan to take measures to stop the yen’s rally. The yen gained mostly versus the greenback, currency which has been affect by a negative sentiment, making it to lose versus most of the 16 main trading currencies, providing support for the yen to touch a nine-month high versus the U.S. dollar, but also high-yielding currencies like the Australian dollar and emergent market options like the Brazilian real hit record highs versus the dollar this week.
Fujii’s statement was perceived with optimism by both Japanese and international traders, since before this week, speculations suggested that an eventual rally for the Japanese currency would be halted by measures coming from the Bank of Japan. Today’s declarations functioned as a green light for the yen to climb further versus the U.S. dollar, and these movements tend to continue during the next week.
USD/JPY traded at 88.18 as of 10:18 GMT from 89.07 in the intraday comparison.

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