By: Barbara Zigah
As the fiscal year end approaches in Japan, the Yen inched higher versus the U.S. Dollar and broadly against other currencies, supported by Japanese exporters opening long positions in the currency. As reported at 1:22 p.m. (JST) in Tokyo, the USD/JPY pair slipped 0.4% to trade at 82.86 Yen, well off the 11-month peak o 84.187 which was hit earlier in the month. Meanwhile the EUR/JPY pair lost 0.3% to 110.46 Yen, off the 4½-month peak of 111.43 Yen struck last week on the EBS trading platform. Traditionally, Yen buying picks up steam at any month end, but given that the year end for many Japanese firms coincides with that the activity has been higher.
Analysts believe that the current accommodative policies set by many of the world’s central banks are leading to an increase in investors’ risk appetite, and that could further encourage investors to use the low-yielding Yen for carry trade transactions. This week, Federal Reserve Chairman Ben Bernanke signaled the bank’s intent to maintain an accommodative monetary policy as he says the U.S. recovery remains fragile; that has led to the softening of the U.S. Dollar, but other safe-haven currencies are also feeling the pressure from the fallout.
Yen Higher as Fiscal Year End Looms
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.