The Japanese Yen fell against all of its major currency pairs yesterday, following the release of optimistic manufacturing data from the world's leading economies. This helped push-down demand for lower yielding assets such as the JPY and USD, and push-up demand for high yielding assets such as the GBP and EUR. Also, as the day dragged on, so did risk appetite. This led to the sell-off of the JPY and the buy-up of foreign assets. Analysts said this is trend is likely to continue as the global economy continues to recover.
The JPY fell by 70 pips against the USD to the 95.43 mark. The Japanese currency plummeted to 137.38 from 134.84 on Monday vs. the EUR. Against the British Pound, the Yen dropped nearly 360 pips to the 161.91 level. As a whole, the Yen it still a strong currency. However, if economies such as the U.S., China and Britain start showing growth in the coming months, then we may see the JPY lose lot of the strength that it gained since the start of the current economic crisis.
The JPY fell by 70 pips against the USD to the 95.43 mark. The Japanese currency plummeted to 137.38 from 134.84 on Monday vs. the EUR. Against the British Pound, the Yen dropped nearly 360 pips to the 161.91 level. As a whole, the Yen it still a strong currency. However, if economies such as the U.S., China and Britain start showing growth in the coming months, then we may see the JPY lose lot of the strength that it gained since the start of the current economic crisis.
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