The Group of Seven Industrial nations who were together for the G7 meeting in Essen, Germany couple of days back relieved the tensed Yen. They didn’t mention that the Japanese currency is going to be a threat to the global economy. But the Yen fell to a record low against the Euro. It fell to 158.75 per Euro on the first day of the G7 meet (Feb 9th). The Yen is said to be remain weak because as Japanese huge interest rate disadvantage should resume to foster the Japan’s capital outflows.
Fallbacks
The Yen traded nearly a four-year low against the dollar and it also dropped against the New Zealand dollar and the British Pound. The Yen also lost ground against the dollar. The Yen may move between 118.50 to 123 per dollar for the rest of this month.
Today is Public Holiday in Japan
It is said that the trading will be about 30 to 40 percent below average owing to public holiday in Japan. The carry trade is increasing day by day against the yen because of only one reason that is the weakness of the Yen. Well, if the yen recovers and makes sure that it’s not the low-yielding currency, then the carry trades may come to an end.
In my opinion –all’s well that ends well. The G7 meet came to an end without owing any burden to the Yen, Now it’s the Yen’s duty to make up for the losses and try to be stable.
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