Safe-Haven Flows Return With Dubai Debacle

Monday, November 30, 2009

The Japanese Yen was widely mixed on Friday as safe haven flows came in after the Dubai news in Forex world, but traders’ exercised caution after The Bank of Japan stepped closer to currency intervention by checking exchange rates with commercial banks.

It was the first time in five years that the Japanese Central Bank made this kind of a move and it came in tandem with Finance Minister Hirohisa Fujii expressed outward concern about the increased valuation of its currency.

The Yen is pegged to the thriving exports that come from Japanese soil; a strong Yen discourages international buyers as it translates into fewer products for more money.

At the close, the Yen was up ¾ percent against the US Dollar to 86.5, down .1% against the Swiss Franc to 86.07, up .12% versus the British Pound to 142.57, down .2% to the Canadian Dollar to 81.473 and down .22% to the Australian Dollar to 78.54. The Yen was up 1.2% against the Euro to close the week at 129.69.


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