By: Barbara Zigah
In London trading today, the Japanese Yen made gains against major currencies, touching on a 3-week high versus the U.S. Dollar and a 1-month high versus the Euro. Analysts attribute the Yen’s rise to continuing investor doubt about the viability of the global economic recovery.
As reported at 8:25 a.m. (GMT), the Japanese Yen traded at 95.01 Yen versus the U.S. Dollar, a 1% increase, while against the Euro, the Yen traded at 131.94 Yen, a rise of .8%. Further contributing to the U.S. Dollar’s decline against major currencies are investor worries about reserve diversification out of U.S. assets. The rating agency, Moody’s, commented that the United State’s current AAA rating may be in jeopardy if there is a challenge against the U.S. Dollar as the primary reserve currency.
The Moody’s spokesperson further noted that if the U.S. government is not able to decrease the government’s debt, that that would also pose a threat to its credit rating. In advance of Wednesday’s meeting of the Federal Reserve policymakers, investors are exercising caution and withholding any decision on purchasing U.S. Dollars until the auctions have been concluded.
Japanese Yen makes Broad Gains on Investor Concerns
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.