By: Barbara Zigah
Chinese share prices again are providing the momentum for the Japanese Yen’s movement versus other major currencies, as investors worry about the possibility of continued weakness in the market, and moved out of higher-risk currencies. As reported at 3:13 p.m. (JST) in Tokyo, the Japanese Yen climbed to a 1-month peak against the U.S. Dollar in today’s Asian trading, at one point touching on 93.47 Yen on the EBS platform. According to one trader in Japan, hedge funds and Japanese exporter’s selling are the reason for the Yen’s rise against the U.S. Dollar. Versus the single currency Euro, the Yen gained .6% to trade at 133.40 Yen; the Yen also gained nearly 1.5% on the Australian Dollar, another high-risk currency.
Some analysts suggest that the decline in Chinese share prices over the past two weeks should not lead to any definitive conclusion, as a pull-back was inevitable given the sharp rally. Nonetheless, some market players will likely continue to buy high risk assets in the troughs, irrespective of the Shanghai market, believing that the economy is recovering. For other investors, the recent decline in Shanghai share prices is enough to make them extremely bullish toward risky assets. Shanghai shares were up .7%, though had been in negative territory earlier in the day.
Japanese Yen Gains broadly on Chinese Share Prices
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.