FXstreet.com (Barcelona) - The Japanese yen is resuming its appreciation against the US dollar, sparked in mid March and dragging the cross from levels above 84.00 to as low as 77.66 at the beginning of June, as safe haven inflows has intensified against a backdrop of increasing jittery in the global markets, all stemming from the euro zone crisis.
E.Theoret, analyst at Scotiabank, assesses that very low expectations about a positive outcome from the EU Council meeting plus renewed concers circling the euro area have prompted investors to seek shelter in JPY. Coupled with the above, the expert add that “…the political environment in Japan has also improved as PM Noda has decided not to expel his party’s lawmakers that voted against the recent tax hike bill…”. He suggests that “… the recent decline in USDJPY (JPY strength) has likely raised the ire of the MoF, which may drive an increase in interventionist rhetoric…”
E.Theoret, analyst at Scotiabank, assesses that very low expectations about a positive outcome from the EU Council meeting plus renewed concers circling the euro area have prompted investors to seek shelter in JPY. Coupled with the above, the expert add that “…the political environment in Japan has also improved as PM Noda has decided not to expel his party’s lawmakers that voted against the recent tax hike bill…”. He suggests that “… the recent decline in USDJPY (JPY strength) has likely raised the ire of the MoF, which may drive an increase in interventionist rhetoric…”
