Demand for Safety Drives Japanese Yen Higher

The Japanese yen rose today on the speculations that European crisis strengthens as some E.U. banks face the funding problems, increasing the appeal of the yen as the safe currency.
Christian Noyer, the European Central Bank governing council member, said yesterday:

some banks have started facing increasing funding problems. The situation reflects a general state of uncertainty which, left unchecked, could have significant consequences on financial stability.

The Great Britain is also threatened by the crisis as the planned severe spending cuts may hurt the economic growth.
USD/JPY traded at about 90.61 as of 9:35 GMT today after opening at 91.10.

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