Japanese Yen Strengthens on Renewed Demand for Safety

The Japanese yen rose today as the renewed concerns that the recovery of the global economy is losing the traction fueled the demand for the safer assets.
The experts say that Federal Reserve is expected to increase its purchasing of the bonds as the US economy may weaken. The recent improvement of the sentiment on the global markets wasn’t strong enough to completely remove the concerns for the global economy. The yen also strengthened as the concerns, that the policy makes will intervene to limit the currency’s gains, eased.
The gains of the yen were limited, nevertheless, by the rally of the stocks. The Standard & Poor’s 500 Index gained 0.5 percent, following the previous decline.
USD/JPY traded at about 85.43 today as of 19:51 GMT after previously declined to 85.18. EUR/JPY traded at 109.89 after it reached the daily low of 109.58.

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