The Japanese Yen ahs strengthened against Pound Sterling and all of its most traded peers after investors seek shelter in the safe haven currency as worries over the Eurozone and rising tensions in Egypt and the Middle East.
The Eurozone posted weaker-than-expected PMI data and concerns are mounting over the stability of the Portuguese government after two senior ministers resigned over controversial austerity measures.
“The Euro is being driven by the headlines coming out of Portugal,” said Paul Robson, a senior currency strategist at Royal Bank of Scotland. “In the past, markets have penalized currencies where you’ve got political concerns and a weak political backdrop. There’s been a lot of complacency about the Euro-area’s periphery in general during the liquidity drench which has seen people hunting for yields.”
Also weighing on market sentiment are the high tensions in Egypt where the country’s military has given encumbered President Mohammed Morsi a deadline to resolve the unrest that has hit the country. Clashes broke out Tuesday night resulting in 16 pro-Morsi protestors being killed at a demonstration at Cairo University.
Mr Morsi insists he is the legitimate leader and will not give in to “violence and thuggery” by resigning. In a defiant televised speech on Tuesday evening, he too said he would give his life to defend constitutional legitimacy, and blamed the unrest on corruption and remnants of the ousted regime of Hosni Mubarak.
The army’s deadline expires at 14:30 GMT today.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.9701 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.5624 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 129.3111 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 77.3213 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 90.7389 <
(Correct as of 11:10 am GMT)