Japanese Yen Drops amid Rally of Global Stocks

The Japanese yen dropped against other most-traded currencies (even the euro that dropped sharply yesterday) as the rally of global stocks limited demand for safety provided by the Japanese currency.

Shares around the world rallied after the European Central Bank announced yesterday prolongation of its quantitative easing. As a result, speculators showed little interest in buying safe haven assets, like the yen. The fall of the currency was not big, though, as markets felt need to digest yesterday’s news.

USD/JPY rose from 114.02 to 114.72 as of 11:45 GMT today. EUR/JPY advanced from 121.03 to 121.38.

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