Oh Yen!!! Will you recover?

I have been asking people is Japanese Yen doing well in the Currency Market. And believe me out of 100%, 90% people feel that the Yen is not doing well in the world market. So, I thought why not look back and find out the reason as to why the Yen is not doing well?

I have gone through the earlier data relating to the Yen. And I found that the Yen has been losing its ground against the Euro, the Sterling and the Dollar too. When we look back to the previous year, in November ’06 the Yen has fallen against Euro making it an all-time high to the Euro. And in December too the Yen fell drastically against the dollar and the Euro. And investors in Japan at that time were using the Yen to buy high-yielding assets. The Yen was down by 0.4% against the Dollar and 0.8% against the Euro.

And in this New Year too, the Yen is not recovering from its downfall. Yesterday, the Yen dropped to a thirteen-month low against the dollar and lost its ground against the Euro. A report from the Bank of Japan suggested that they are not going to raise the interest rates. A BOJ analyst said that we should continue to monitor the consumer prices and personal consumption, before deciding whether to raise the interest rates or not.

Yesterday, the Yen fell 0.3% against the dollar and 0.2% against the Euro. But it was flat against the pound at Y236.60.

Sterling fell 0.3 per cent against the dollar and dropped 0.2 per cent against the Euro. The Euro rose to a high of $1.2990 against the dollar. But at the end of the day the Dollar made some quick gains against the Yen and the Sterling.