The yen is being traded at the highest level in August as Asian stocks declined again, pushing the Japanese currency up for a third day in a row, since bearish markets rise attractiveness for the safe profile of the yen.
The best performing currency this week among the 16 most traded is the yen, which is benefiting from a new wave of risk aversion that made traders to purchase safer assets. Today, China’s Commerce Minister made an statement referring to yesterday’s disappointing report regarding Chinese exports, suggesting that even with all efforts provided by the government, China is not responsible to regulate exportation demands, adding another bit of pessimism towards the Asian economic future. CIT Group Inc, which made the news recently on bankruptcy concerns, is delaying the last quarter report, which is not a good factor for banking equities market sentiment.
Several reasons are enlightening traders’ perspectives towards the economic recovery, and it could be already understood that a fast pace solid revival is not coming, which is negative for equities markets and risky assets, favoring the yen. The global economy is likely to recovery, but its uncertain how long it will take and what economic growth levels are sustainable, making a confusing market to rise attractiveness for safer bets.
CHF/JPY traded at 88.09 as of 8:21 GMT from a previous rate of 89.47 yesterday. CAD/JPY fell to 86.31 from 88.83.
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