Cryptocurrency

Forex: The yen strengthens

The yen strengthened at the international level and in Forex, after that the economic figures of the american currency were negative, demonstrating an excellent performance in the asian economies.

The constant search for safe operations in the Forex market, was what set the trend at the start of the pandemic to the investors.

Therefore, before such an unimaginable scenario, opt for the risk appetite was not a good option.

However, as the economies of the countries that have managed to curb the disease have recovered a little of its strength of the past, investors restarted their interest in the risk.

The yen strengthens as a safe haven

Forex japanese has managed to win increasingly the confidence of investors in the last few weeks. This happens because they have based their promises of a fast economic recovery with positive economic data.

In addition, tensions between China and the united States have allowed the currency to japan to take the lead.

So, the yen managed to reach a maximum of more than four months this Friday. Demonstrating that there is a prevailing confidence among the investors with respect to the currency in asia.

However, the chinese yuan has also had a good performance in the week, thanks to the positive figures arising from its economy.

The worst performance of the dollar to date

If you want to talk about currencies that have gone virtually into free fall in the month of July, we should talk of the dollar.

While the yen strengthens, the dollar has hovered on the path of recording its worst performance weekly in more than four months against a basket of currencies which have clearly improved its performance in the market.

In addition to this, the dollar has had to fight against a euro on the rise, because the european currency has dramatically improved its performance in Forex, after that the leaders of the EU to agree to economic measures that would generate positive effects to the countries of the bloc.

Meanwhile, the euro reached a new maximum of 22 months against the dollar and climbed 0.3 per cent to $1.1632.

The yen strengthened in the Forex market, as currencies such as the euro. Source: Reuters

As well, the dollar is in trouble is to little to register its biggest percentage loss weekly from the beginning of June.

“Investors are avoiding the dollar, because of their concerns about the prospects of the economy of the EE. US,” said Kathy Lien, managing director of BK Asset Management in New York.

Quote of the yen to date

At the time of the writing of this article, the yen is traded in pair with the dollar at $105.87, reached a maximum of four months. While the dollar fell to a minimum not seen in almost two years.

The yen strengthened in the Forex market, because of the political tensions between EE. U.S. and China. Source: Yahoo Finance

In summary, the yen strengthens and this is just a sample of what the promises of an economic stabilization can be achieved.

Its good performance is proof that investors are moving out of your safe zone, focusing its operations in currency that had lost their security tag at the start of the pandemic.

And although some analysts consider that the following months you will notice an improvement in the Forex market. Hard currency, like the dollar, still have a lot of that defeat to regain its previous rate.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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