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TorFX

Japanese Yen to US Dollar (JPY/USD) Exchange Rate – Yen strengthens on safe haven demand

Japanese Yen
The Japanese Yen has made gains against all except one of its most traded peers as a drop in European and Asian equities caused investors to seek shelter in the safe haven Yen.

Against the Euro the Yen strengthened for the first time in three days as the single currency fell against the US Dollar for a second day due to increasing speculation that the European Central Bank will opt to maintain interest rates at record lows despite recent data showing signs of improvement in the struggling Eurozone.

“Japanese stocks have fallen for the last couple of sessions and that’s giving the Yen some support,” said Simon Smith, chief economist at FxPro Group Ltd. in London. “We’re seeing a tighter correlation between Japanese stocks and the Yen. It’s going to be a slower grind for the Yen to weaken.”

Other data released this week has shown that the weak Yen has assisted sales for some of Japans biggest companies. Nissan led Japanese automakers in reporting higher earnings as the Yen gives them an advantage over their rivals in South Korea and other parts of Asia.

“It was a perfect storm for the Japanese automakers a few years ago with the recalls, tsunami and strong Yen,” said a managing director of Intelligence Automotive Asia. “The weak Yen definitely gives Japanese automakers a big boost, and the tables have turned on Hyundai.”

TorFX

Yen traders should keep an eye on this evening Japanese National Consumer Price Index data. Economists are expecting a rise from -0.3% to 0.1%.

Current Japanese Yen (JPY) Exchange Rates

The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.9877

The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 153.5910

The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.1637

The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 80.0411

The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.4757

(Correct as of 12:45 pm GMT)