On February 26, 2009 at 3:12 p.m. in Tokyo, the Japanese Yen fell to a 3-month low against the U.S. Dollar and a 7-week low versus the Australian dollar, as investors’ bet against the currency mounted, aided by worries about the outlook for the Japanese economy.
Last week’s data, which showed portfolio outflows from Japan, underscored the fact that investors no longer regard the currency as a safe haven, with many investors now wondering how far the Yen can drop as “technical sell” activities spur negative sentiment toward the Yen.
The Yen has lost more than 10% of its value against the U.S. Dollar since surging to 87.10 Yen in January, which is a 13-year high. Short-term speculators have also been compelled to unwind bets, and it is probable that it would again match that level. If that happens, the currency will be forced even lower. According to one forex expert, it’s possible that the U.S. dollar will rise near 100 Yen, albeit temporarily.
The U.S. Dollar rose by 0.4% against the Japanese Yen and traded at 97.98 Yen, its highest level since mid-November of last year. The Euro climbed by 0.4% against the Japanese Yen and traded at 124.38, after reaching a 7-week high level of 125.16 Yen yesterday.