Yen Falls After Greek Elections, Pares Losses

The Japanese yen fell today after the victory of a pro-bailout party in Greece spurred risk appetite among investors. The positive sentiment was short-lived, though, and the currency pared its losses.
The pro-bailout New Democracy party came at the Greek elections this weekend. Now, the political parties that prefer to stay at the eurozone make up a majority in the parliament and can form a coalition government. The problem is that real difficulties of the indebted country remain and simple political games cannot change that. Additionally, risk aversion returned as Spanish borrowing costs surged above the 7 percent level.
USD/JPY climbed from 78.79 to 79.30 before retreating to 78.91 as of 15:21 GMT today. EUR/JPY dropped from 100.03 to the daily low of 99.12 following a rally to 100.84.

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