The Japanese Yen has strengthened for a fourth day against the Euro and made gains against a number of peers as investors fled to the safe haven currency over ears over the Chinese economy.
Chinese equities fell for a sixth consecutive day on Wednesday despite the Chinese Central Bank revealing that it was taking action to relieve the cash squeeze threatening the world’s second largest economy.
The People’s Bank of China said yesterday it will use tools to safeguard stability in money markets and that tight liquidity is set to ease. Despite the comments the Shanghai Composite Index fell 0.4%.
The Euro fell against the Yen as investors grew uneasy over a number of factors in the Eurozone including comments made by European Central Bank President Mario Draghi and worries over the Italian economy.
Draghi dampened demand for the single currency after saying that the single currency bloc still required an accommodative monetary policy.
Information unearthed by the Financial Times, Italy is at risk of losing billions of Euros on derivative contracts restructured at the peak of the ongoing fiscal crisis in the Eurozone. Adding to the sense of unease were leaked reports from Italy’s second largest bank.
According to Mediobanca, the country is likely to need an EU rescue within six months as the embattled country continues to slide deeper into recession and as a credit crunch spreads to large companies.
The Yen tends to strengthen during periods of financial and economic turmoil because Japan isn’t reliant on foreign capital to fund its deficits.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.6026 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 149.9506 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 127.3221 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 75.7061
(Correct as of 10:20 am GMT)