The yen had a weak performance today losing versus most of the 16 main traded currencies towards the end of this week’s session as increased risk appetite has shunned traders from its safety to seek higher-yielding possibilities in emergent markets and commodity-linked countries.
The euro gained versus the yen today after a report indicating that German business confidence touched the highest level in 13 months was published, attracting investors to higher-yielding possibilities in Europe and abandoning yen-priced assets. The yen also lost significantly versus commodity-linked and emergent-market currencies after stocks rebounded today reverting some sessions of losses during the week, also adding to the already intense risk driven sentiment which is unfavorable for the yen in the international trading scenario. The pound was one of the only currencies that declined versus the yen, as a quarterly GDP report showed the countries remains in its longest recession in more than 50 years.
A high in demand for commodities combined with increased confidence that attracts traders to riskier, but more profitable assets, are impacting the outlook for the yen, according to currency strategists. The forecast for the yen tends to remain timid, as risk appetite continues to rise on successive favorable reports from countries like Australia, Canada and the Eurozone, which is leaving the yen in the shade for the moment.
EUR/JPY rose to 137.80 as of 14:11 GMT from a previous rate of 137.15 in the intraday comparison. USD/JPY followed, from 91.37 to a current 91.83.
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