The Japanese Yen made gains against the US Dollar, Euro and other major peers after Japanese Prime Minister Shinzo Abe disappointed investors after he failed to provide additional information over the nation’s stimulus measures, a move that boosted demand for safer haven assets including the Yen.
The Prime Minister announced the ‘third arrow’ of his economic revival plans but failed to give any concrete measures leading to the Yen rallying and Japanese government bonds rising.
“There’s general disappointment that Abe didn’t announce anything that was surprising or new,” said the head of currency strategy at Canadian Imperial Bank of Commerce. “There’s some disappointment in Japanese stocks and that’s pushing the yen up.”
The US Dollar broke through the 100 Yen level
The US Dollar broke through the 100 Yen level once more on Wednesday as the Japanese stock market, the Nikkei slid. The US currency remains fairly weak following Mondays worse than expected ISM data and yesterdays widening of its trade deficit.
“It was an algorithm movement. The Forex market is tightly correlated with the stock market at the moment, which is very choppy. It also seems that some people had high expectations for Abe’s speech, but all positive factors were eventually exhausted, “said Yoh Nihei, senior FX market analyst at Citi.
Abe’s overall plan is to see gross national income rise by 3% over the next decade and to double foreign direct investment as he works to return the long stagnant Japanese economy to growth.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.8665
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 153.4140
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.5563
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 79.9092
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 95.6521
(Correct as of 09:55 am GMT)
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