Become our Friends on
Home » , » Yen Falls on Fed Positive Remarks

Yen Falls on Fed Positive Remarks

Written By Trading Forex News on Thursday, January 28, 2010 | 9:44 AM

Yen Falls on Fed Positive Remarks
The Japanese currency ended a rally fueled by risk aversion as a Federal Reserve statement published yesterday brought optimism to financial markets globally, decreasing appeal for refuge investments available in Japan, specially versus high-yielding currencies.

The yen posted the sharpest decline this week after the U.S. President Barack Obama suggested tax privileges to help companies in the country to grow, after risk appetite had already increased on a Federal Reserve statement which pointed that different U.S. economic sectors were already showing evident signs of improvement, allowing the nation’s central bank to leave some stimulus to expire. Currencies from commodity producer countries like the Australian, New Zealand and Canadian dollar ranked among the biggest winners versus the yen today, as renewed risk appetite is likely to increase demand for these countries’ raw materials, to supply an eventual acceleration in manufacturing production in the U.S. and globally.

After so many days of risk aversion allowing the yen to reach the highest rates in 2010 versus higher-yielding currencies, the Japanese currency tumbled, as optimism in the U.S. brought stocks up, bringing traders to shift from the yen’s safety to riskier assets.

CAD/JPY traded at 84.73 from a previous intraday rate of 83.82. AUD/JPY traded at 80.80 from 79.98.

Share this article :

Post a Comment

 
Support : Creating Website | Hang Moi Ve |
Copyright © 2009 - 2013. Bohuc.com - All Rights Reserved
Template Created by maskolis.com. Published by Bohuc
Proudly powered by Blogger