The Japanese Yen tumbled against to a five-year low against the Pound and weakened against the majority of its peers as risk appetite improved in the wake of the deal signed between Western powers plus China and Iran.
Demand for the safe haven Yen dropped after the deal was reached in Geneva Switzerland between the United States, Russia, China, Germany, France, UK and Iran over the latter’s nuclear programme. The deal will see the easing of sanctions against Iran which is hoped will boost trade. As a result investors took a risk on approach to today’s session.
“The market has taken the news out of the Iranian deal fairly positively. The Yen continues to bear the brunt of that. In the short term it can weaken further, particularly if we see an improvement in the US data,” said the head of currency strategy at Canadian Imperial Bank of Commerce.
So far this year the Yen has declined by 13% making it the biggest declining currency amongst 10-developed-nation currencies. The decline is welcome news for the Bank of Japan and Prime Minister Shinzo Abe who is starting to see the rewards for the huge monetary easing programme initiated earlier in the year.
Against the US Dollar the Yen fell to a six-month low and against the Euro the Japanese currency is trading at a fresh four-year low. A report due to be released later in the week is expected to show that inflation in Japan picked up speed in October.
Governor of the Bank of Japan Haruhiko Kuroda said that the bank’s target inflation rate of 2% could be reached late in 2014 or early in 2015.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.7415
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 164.8323
The Euro/Japanese Yen Exchange Rate is currently in the region of: 137.5860
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 83.6686
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 93.2654
(Correct as of 12:00pm GMT)