The Japanese yen dropped against its major counterparts today even as the market sentiment was not particularly favorable to risk and should have boosted safe haven assets.
The yen is considered to be a safe currency and often rallies in times on fear and uncertainty. With troubles in Greece and poor economic indicators from China, one could assume that the Japanese currency would rise. Yet this has not came to pass.
One of the reasons for the poor yen’s performance is the unexpected rally of European stocks. Another possible reason is that some traders still have optimism about Greece’s ability to negotiate better terms for loans. Yet most analysts think that such optimism will be short-lived, meaning that the yen may yet find support in its role of a haven.
USD/JPY rallied from 118.63 to 119.39 as of 20:47 GMT today, trading near the highest level since January 9. EUR/JPY rose from 134.31 to 135.12 and GBP/JPY advanced from 180.47 to 182.09, close to the highest since January 6.
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