Japanese Yen Gets a Boost on Greece

Japanese yen is heading higher today as concerns about Greece once again take center stage. While Greek Prime Minister Lucas Papademos insisted that some progress was made over the weekend, he also pointed out that there are still some conditions left. The unresolved situation is adding to the uncertainty that is prompting risk aversion today.

As a result of the risk aversion in the markets, Japanese yen is heading higher. Yen is considered a stable currency — a safe haven currency. And, right now, with concerns about European currencies high, it is little surprise that the yen is seeing some gains today. The US dollar is gaining as well, and is one of the few currencies stronger than the yen, although the greenback isn’t much higher against the yen.
For now, Japanese leaders are mostly quiet about the gains for the yen. However, if they become too pronounced, or if the yen starts gaining against the US dollar, we might see an intervention. Japan has been very active in making sure the yen’s appreciation is limited over the past year, and that policy is likely to continue in the near term.
At 14:50 GMT USD/JPY is slight higher at 76.6200, up from the open at 76.6175. EUR/JPY is down to 100.1150 from the open at 100.4850. GBP/JPY is lower at 120.9060, down from the open at 121.1250.

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