The Japanese yen strengthened today as stocks declined and commodities retreated, increasing demand for the currency as a safe haven.
The Standard & Poorâs 500 Index declined 0.7 percent, while the Reuters/Jefferies CRB Index of 19 raw materials was little changed after rising 1.1 percent. Crude oil traded at $105.48 per barrel after it gained earlier as much as 2.4 percent. The heated situation in Libya continues to cause concern and uncertainty about its impact on the global economy, driving traders to safe assets.
Kathy Lien, director of currency research with online currency trader GFT Forex, voiced her opinion about the reasons behind today’s moves:
Not only are you seeing a turnaround in equities and currencies, but youâre also seeing quite a bit of a turnaround in oil. People could be looking beyond the inflationary impact of oil prices and focusing on the consequences it could have on growth.
USD/JPY traded at 82.27 today as of 22:22 GMT after it opened at 82.21 and dropped to 81.94. EUR/JPY declined from 115.06 to 114.94, while GBP/JPY went down from 130.80 to 133.27.
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