Japanese yen is rallying against other majors today as risk aversion in the markets prompts an interest in safe haven. The yen is prized for its stability, even though it is a low yielding currency. Concerns about the eurozone are a big part of the uncertainty right now.
Worries about the eurozone are dominating markets today, as the European Central Bank leaves the interest rate unchanged. Concerns about the eurozone economy are in a big part of the markets today, with slowing employment and Mario Draghi content to take a wait and see approach.
With all the uncertainty and worry, it is little surprise that the Japanese yen reached a three-week high against the euro earlier in trading. Yen is gaining against other high beta currencies, including the UK pound and the Australian dollar. Yen is also higher against the US dollar. For now, Japanese leaders are letting the yen strengthen. However, Japanese leaders have been known to intervene to keep the yen weak. If the yen strengthens too much, they are likely to do what they can to keep the yen weak.
At 13:34 GMT EUR/JPY is lower at 108.1495, down from the open at 109.5950. USD/JPY is down to 82.4560 from the open 82.8150. AUD/JPY is also lower, moving to 84.50, down from the open at 1.2613. GBP/JPY is down to 130.2000 from the open at 131.7750.
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