Japan Yen Rate

vinoth1234

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The dollar fell near [JPY=X 82.06 0.26 (+0.32%) ] 81.89 yen, its biggest one-day decline since Dec. 3, while the yen also rallied against the euro, pound and Swiss franc.

The euro, meanwhile, rose 1 percent toward $1.3894 [EUR=X 1.3922 -0.0038 (-0.27%) ] after leaders reached a deal to establish higher retirement ages, more flexible labor markets and debt and deficit limits for euro zone countries.
 
"The Bank of Japan has also decided to pump 15 trillion yen ($183bn USD) into the markets to improve financial stability in the short term. This should increase the yields on Japanese debt, attracting investment. A similar policy was put in place after the Kobe earthquake in ‘95 and 3 months later USDJPY had lost near 20% to sit at an all-time low. While we are not suggesting that a similar move is likely in the coming 3 months, a strengthening of the yen has to be watched for."
 
JPN is second only to china in holdings of US treasuries, and I believe first or second in worldwide debt ownership. that's why, counterintuitively, the jpy will strengthen when there is bad news coming out of japan. they have to re-patriate their funds for them to be of any use to its citizens. Similar type of situation for most funding currencies with a larger manufacturing/export pinned economy.

In NZ since foreign countries seeking yield differentials account for a much larger portion of ownership, their liquidation activities put downward pressure on the kiwi following the earthquake which is a bit more intuitive.
 
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