Japanese yen is lower right now, dropping against its major counterparts as news from the weekend is processed. Even though risk aversion is the general rule for now, the yen is heading lower.
It’s been an interesting weekend around the world. In Crimea, the word is that the people voted to leave Ukraine and join the Russian Federation. Some are skeptical of the news reports, since many of them come from Russian sources, but if those are the results of the referendum, it would not be surprising to many. Additionally, China announced that it will give the yuan more leeway against the US dollar, resulting in a little more volatility.
Some had expected all of this uncertainty to lead to a higher Japanese yen, driven by safe haven demand. However, the yen already gained quite a bit last week, and it appears that right now it’s time to consolidate and prepare for the next big thing.
For now, the yen is lower against its major counterparts, although there is speculation that the yen could make another run of it later in the week.
At 13:24 GMT USD/JPY is up to 101.7780 from the open at 101.3530. EUR/JPY is up to 141.5450 from the open at 140.8750. GBP/JPY is up to 169.1105 from the open at 168.4875.
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