Excerpt from: Forex Analysis
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| March 30, 2009 | | Yen higher on risk aversion in currency trading | As risk aversion and uncertainty set in, the yen is moving higher in currency trading on the FX market. The Japanese yen often moves higher in forex trading when risk aversion becomes and issue. Japan has a relatively stable banking system and is considered a safe haven investment.
Right now, with uncertainty over the economy, a falling stock market and concerns over goverment power grabs, investors are looking for safe havens. Another issue is that many European countries are unwilling to commit the kind of cash the U.S. is offering for economic stimulus. As a result, the uncertainty is providing a catalyst for the yen to rise against the U.S. dollar in forex trading.
| Topic Tags: currency trading, economic stimulus, forex trading, Japanese yen, risk aversion, safe haven, U.S. dollar, yen currency trading | |
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