Yen Rises Against the Euro and Dollar

By ForexBrokers · Filed Under News Leave a Comment 

In an economic climate where investors are seeking safety from the crisis in the euro zone, the yen rose against the euro and dollar on Thursday. The yen’s climb was supported by the return of the currency at the fiscal year-end. Reports of the Q4 GDP in the US and jobless claims for the week did not stop investors from buying the yen.

The US currency dropped to less than Y82 – the first since a similar drop on 9th March this year. Despite this, late Thursday in New York, the dollar traded a little over Y82. This was less than the Y82.89 it reached Wednesday, when the euro went from Y110.40 to Y109.67.

Yen Repatriation Benefits the Currency

The past few days’ yen repatriation has benefitted the currency. In just the last seven days, the dollar dropped approximately 2% against the yen. Long positions have reduced with the current placement of the dollar and yen, according to Mizuho Corporate Bank’s head of currency sales, Fabian Eliasson. People are going for the yen as many investors have decreased the longs.

Dollar Failed to Rise Against Yen Despite Promising Situations

Oppenheimer Funds’ portfolio manager, Alessio de Longis stated that when oil prices dropped Thursday, market watchers expected the dollar to do well. Their belief in the US currency was strengthened by a decrease in commodity prices. However, despite improvements in these quarters, the dollar did not rise against the pound or yen.

The UK and Japanese currencies are doing better because of the current trend in profit taking (short-term). Longis stated that a target of Y80 is reasonable. However, the Ministry of Defense in Japan is likely to defend the level so that it can show down a possible sudden rise of the yen.

Investors Rely on Yen in Light of Euro Zone Economy Slowdown Possibility

Investors fell back on the safety of the Japanese currency as worries about a slowdown in the economy in the euro zone continued to negatively affect the euro. Though the dollar too did not fare well against the yen, it did recover against the Australian dollar, a high-yielding currency. This is because, investors prefer safe options like the dollar when compared to the Australian currency, which is more likely to fluctuate.

Have you Tried Binary Options Trading Yet?

binary_options1Binary Options trading is one of the newest forms of trading to hit the markets.  Binary options allows you to trade currencies, stocks or indices with fixed odds.  For more information visit our recommended broker now:

Leave a Reply

© 2018 | XML Site Map
Risk warning / disclaimer: Be aware that online trading (for example Forex, CFD or Binary Options) involves high risk. Your capital is at risk. Trade only with money you can afford to lose and talk to an expert before starting trading. We cannot be held responsible for your losses.