Yen Gains, Strengthened by Europe’s Woes

Yet another downgrade of a credit rating of a European country was announced. This time Spain’s rating was cut by Moody’s Investor Service, making traders shun risk and seek for safety of the Japanese currency.
Moody’s reduced Spain’s credit rating by two notches to A1 from Aa2. The outlook stayed negative. The rating agency explained that the already moderate growth outlook for the nation’s economy is further threatened by the financial instability of the Eurozone. The report from Eurostat tomorrow is expected to show that the consumer confidence in Europe deteriorate from -19 in September to -20 in October, the lowest level since August 2009.
USD/JPY fell from 76.81 to 76.67 today as of 2:08 GMT. EUR/JPY was at 105.54 after dropping from 105.64 to 105.31 today.

If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *