Demand for Safety Increases Appeal of Yen

The Japanese yen strengthened today amid the concerns that the austerity measures, planned by the European countries in order to battle the sovereign-debt crisis, might derail the global economic recovery.
The troubles in Europe continue influence the global economy, damping the willingness to risk among traders and increasing the demand for the safety. Moreover, the yesterday’s unfavorable data from the U.S. decreased the appeal of the dollar as the safe currency, making the yen the primary currency in the role of the safe haven.
USD/JPY fell to 90.64 as of 11:28 GMT today after opening at 90.99. EUR/JPY dropped to about 112.20 from the opening price of 112.73.

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