The Japanese Yen has made gains against the majority of its peers making its first rise in three days against the US Dollar after a slide in European and Asian stocks sent investors to the relative safety of the Asian currency.
Steep losses in the Asian equities markets on Monday night supported the Yen and the rising speculation that the US Federal Reserve could begin to scale back its quantitative easing programme as soon as September saw investors pull out of riskier assets and turn to the safer currencies.
“The Yen tends to attract buying when tensions in the market increase” said Satoshi Okagawa, senior market analyst for Sumitomo Mitsui Banking Corporation. Mr Okagawa added that the recent turmoil being seen in emerging markets such as Brazil, India and Indonesia has spurred on demand for the Yen. As a result of that turmoil the Indian Rupee fell to a new record low early on Tuesday and the Indonesian Rupiah has hit its lowest level since April 2009.
Against the Euro the Yen edged higher after the single currency softened slightly following the release of data which showed that German producer inflation fell by 0.1% in July from the previous month. Economists had been forecasting that the data would show an increase of 0.2% on a month-by-month basis.
Investors are now looking ahead to Wednesday when the Federal Reserve releases the minutes for its July policy meeting for further indications as to when the Central Bank will begin to start phasing out its stimulus measures.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.0175 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 152.1369 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 129.6056 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 77.5711 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 87.8803 <
(Correct as of 10:05am GMT)