Yen climbs against majority of rival currencies

Posted On: February 28, 2012
The value of the Japanese yen achieved gains against all but one of its primary counterpart currencies on Tuesday, according to Bloomberg.

The primary driver of the strong performance of the monetary unit of the Pacific Rim nation was conjecture about exporters in Japan capitalizing on the monetary unit's recent weakness to bring returns from international earnings. The Yen now has achieved marked two consecutive days of gains against the U.S. dollar, marking the first rally of its sort in roughly 14 days.

"There's talk of month-end-related repatriation by Japanese exporters," currency strategist Lee Wai Tuck with Forecast in Singapore told Bloomberg. "This seems to be pushing the yen up."

The value of the yen also climbed as a consequence of traders and investors betting that the monetary unit's fall to its lowest value in nine months against the world's reserve currency was too quick. The likelihood of companies and investors in Japan having to repatriate earnings by the end of next month, the end of the fiscal year, also is likely to serve as a driver for demand.

Reuters reports the Bank of Japan's monetary easing policy earlier this month, the fourth since early 2011, is likely to contribute to the yen's worst monthly performance in at least 24 months.

Category: Industry News

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