On February 25, 2009 at 3:37 p.m. in Tokyo, the Japanese Yen dropped across the board, hitting a fresh 3-month low against the U.S. Dollar as investors no longer perceive the Japanese Yen as a safe-haven, because of the rapid weakening of the Japanese economy and the associated domestic political worries.
The Japanese Yen, along with the U.S. Dollar, had been a safe-haven this year during the drop in stock markets worldwide, however, it began losing its safe-haven status when data released last week showed that, during the last quarter of last year, the Japanese economy contracted, the most in more than three decades. According to data released today, exports from Japan dropped by 45.7% in January, compared to the same period last year
The U.S. Dollar gained 0.7% against the Japanese Yen and traded at 97.32 Yen, after hitting briefly on 97.35 Yen, a 3-month long high. The Euro rose by 0.5% against the Japanese Yen and traded at 124.79 Yen, hitting a nearly 2-month high of 125.01, while the Japanese Yen also fell against the Pound Sterling. The Euro dropped slightly by 0.1% against the U.S. Dollar and traded at $1.2831.