The Japanese yen rose today against the US dollar and the Great Britain pound, which were demonstrating softness at the current trading session. But the Japanese currency was unable to outperform the euro, which is now trying to gain ground after it has halted its long decline.
The Monday’s trading session was rather quiet as markets in many countries, including Canada, Japan and the United States, were closed for various holidays. The yen managed to gain versus other weak currencies, like the dollar and the sterling, but its own strength was not enough to outperform stronger currencies.
While the yen demonstrated strong performance since the middle of September, there are reasons for the currency to halt its rally. Japan’s economic recovery proceeds not as fast as Japanese officials have hoped, reducing the attractiveness of the yen. Indeed, the International Monetary Fund lowered its growth forecast for Japan, confirming that the country’s economy experiences difficulties.
USD/JPY declined from 107.54 to 106.87 as of 21:16 GMT today. GBP/JPY fell from 172.86 to 171.91, trading near the lowest level since September 10. At the same time, EUR/JPY climbed from 135.85 to 136.34, bouncing from the daily low of 135.55 — the lowest rate since November 21, 2013.
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