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Risk aversion strengthens yen

On Tuesday, the Japanese yen held on to revenues, backed up by traders’ risk aversion as well as fading expectations that Japan is going to weaken the currency after a fresh warning by the US last week against intervention.    

Commodity-linked currencies, including the Australian and Canadian dollars found themselves on the back foot, weighed down by an ongoing decrease in commodities such as crude oil.

As for the common currency, it treaded water at 122.635 yen, right after dipping 0.8% overnight.

The evergreen buck dared to rise 0.1%, being worth 109.385 yen, having dropped to  109.120 on Monday, when it lost almost 1%. 

The major US currency had surged to a three-week peak of 110.590 last week, following prospects of the Fed as for another interest rate hike in June.

However, the greenback has given back a huge portion of its revenues to the Japanese yen after a weekend G7 gathering of major bankers as well as finance ministers, who along with the US issued warning to Japan against probable intervention aimed at taming the yen.      

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