The yen declined today versus virtually all of the 16 main traded currencies as investors opted for The yen posted the sharpest losses today versus commodities linked currencies like the Australian dollar, as demand for metallic commodities has been rising since the beginning of the week. The Japanese currency, known for its safer profile, has been less attractive in the beginning of 2010 as most traders expect an economic recovery in a worldwide scale, which is fueling rallies in both equities and commodities markets, consequently bringing investors to currencies linked to these fluctuations, as the Canadian dollar, which also gained significantly versus the yen and continues to advance versus its U.S. counterpart.
Even if the Japan’s finance minister resignation occurred due to health reasons, a shift on this position combined with a strong risk appetite sentiment made the yen to rank as the less attractive investment in currency markets today, and it may extend its losses further as long as optimism remains strong.
AUD/JPY traded at 84.66 as of 14:54 GMT from a previous rate of 83.59 yesterday. CAD/JPY traded at 89.25 from 88.18.
From: TopForexNews.com
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