Japanese Yen Stronger Against US Dollar

Japanese yen is stronger against the US dollar today. In general, dollar is down against most other currencies as optimism improves on the news that jobless claims have dropped to significantly low levels. This same optimism is also prompting the euro to gain against the Japanese yen.

Better economic news out of the United States is providing some strength for the euro, as the 17-nation currency is bought as more optimistic Forex traders look for higher yields. Without the need for safe haven, the yen is lower against the euro.
However, in general, the yen has shown strength in the last quarter. The European debt crisis, as well as floods in Thailand, have combined to create a situation in which the yen has gained in the past few months. The situation has been bad for business sentiment in Japan, with the tankan survey reflecting a poor business outlook.
A stronger yen means that Japan loses some of its exporting edge, and, combined with the recent global slowdown, businesses in Japan have been taking a hit. There are hopes, though, that the latest US economic data could indicate that things are turning around. What Japanese leaders really want is robust global economy and a weak yen.
At 16:42 GMT, USD/JPY is lower at 77.8895, down from 78.0900 at the open. EUR/JPY is higher at 101.3900, up from the open at 101.3670.

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