Yen Gains Against Majors as Decline in Stocks Drop

By TraderVox.com

Tradervox (Dublin) – The yen has been boosted by the decline in stock as investors have tried to seek refuge assets in the market. The yen increased against all the major currencies as investors sought safe haven assets. The euro has continued to increase against the dollar reaching a near one-month high today.

The current bullish run is as a result of traders’ speculation that the euro zone leaders will agree on creating a stronger firewall on the meeting to be held on Friday. However, the dollar was up against the Aussie prior to a report showing that YS orders for durable goods increased last month. This is further expected to reduce the prospects of another monetary easing operation by the Fed.

According to a Singaporean analyst, Lee Wai Tuck, the US stock fell but the Asian stock fell lower indicating that the Aussie might fall further down against the yen and euro might fall against the yen. The yen has strengthened against all the major currencies as speculation of Japanese companies repatriating their overseas earnings prior to the yearend on March 31 took root.

The yen increased by 0.6 percent against the dollar buying a dollar at 82.68 yen during the European session. It had climbed 0.2 percent against the buying the 17-nation currency at 110.51. However, the euro climbed against the dollar by 0.4 percent to settle at $1.3362. The euro climbed to $1.3386 yesterday, which is the highest it has been since February 29. The Australian dollar was weaker against the dollar by 0.2 percent selling at $1.044 during the European session.

According to some analysts, the yen is being affected by the demand and supply forces prior to the setting of exchange-rate by the fiscal year end.  The analysts are saying that the demand for the yen in the morning hour in Tokyo is due to traders’ efforts to buy the yen before the rate is fixed by most financial institutions which are usually done at 10 am in Tokyo.

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