Japanese Yen Gains amid Risk Aversion

The Japanese yen ended Friday with gains as risk aversion attracted investors to the perceived safety of the currency, allowing the yen to move away from multi-year lows that it has reached recently.
Traders are worried that the US Federal Reserve may tamper its quantitative easing program. Such concerns bolstered safer currencies, weakening risky ones at the same time.
Japan’s QE created an interesting paradox. It was introduced with intention to help the Asian nation’s economy. Yet in fact it has created volatility that constrained business and consumer confidence. Such issues added to the safety appeal of the yen.
USD/JPY fell from 101.99 to close at 101.08. EUR/JPY edged down from 131.90 to 130.75 and GBP/JPY slid from 154.07 152.89.

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