The Japanese yen continued to rise against other most-traded currencies as the market sentiment favored safe assets, making the Japanese currency more attractive for investors.
The risk sentiment, which was previously in favor of high-beta currencies, turned sour and made Forex traders flee to the safety of the yen. One of the reasons for concern is possible slowdown of China’s economic growth. Today’s report is expected to show that the manufacturing sector of the Asian country was growing with slower pace.
The yen was rising against other currencies, including the New Zealand dollar and the Great Britain pound, and even against the US dollar, which itself is considered to be a safe currency. The strength of the yen hurt carry traders, who had to unwind their positions to avoid further losses.
USD/JPY dropped from 102.70 to close at 102.15. EUR/JPY declined from 139.18 to 137.68 and GBP/JPY dipped from 169.30 to 167.91.
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Yen Ends January on Strong Note
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