The Japanese yen dropped today as the market sentiment improved. There was a couple of reasons for this, including the rally of stocks and speculations about the possible timing of an interest rate hike from the Federal Reserve.
Global stock markets have crashed earlier this week following the collapse of Chinese shares, but today stocks climbed, including the Shanghai Stock Index that advanced more than 5 percent. Meanwhile, economists speculate that probability of a September hike from Fed is very low, making market participants less reluctant in investing in riskier assets. All the positive news makes the yen less relevant in its role of a haven currency.
USD/JPY rallied from 119.91 to 120.27 as of 9:43 GMT today. EUR/JPY was up from 135.62 but retreated from the daily high of 136.40.
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