Yen Profits from Signs of Global Slowdown

The Japanese yen climbed today against most major currencies as signs of global economic slowdown made investors seek safety, sending stocks and commodities down together with currencies related to growth.
German unemployment climbed 21,000 last month, much more than was predicted by analysts. The International Monetary Fund revised China’s growth for this year from 8 percent to 7.75 percent. The forecast was not completely bad as the agency promised that growth will accelerate in the second half of the year, but it was not good either.
Markets reacted negatively to the news. The Standard & Poor’s 500 Index of shares fell 0.7 percent and the S&P GSCI Index of commodities tumbled as much as 1.2 percent. The yen gained strength amid nervousness and uncertainty among traders.
USD/JPY fell from 102.35 to 101.07 as of 23:17 GMT today. EUR/JPY went down from 131.58 to 130.77 and GBP/JPY slipped from 153.92 to 152.82.

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