The Japanese yen – arguably the hottest currency trade in the world right now – continues to sink against the U.S. dollar.
Today’s move marks the yen’s biggest dive against the dollar in over two weeks and comes on the heels of the Japanese currency’s recent strengthening over the past few trading sessions.
Today, it’s breaking through new lows in its recent journey downward – right now, it’s trading around 94.30 to the dollar versus where it opened last night, around 92.72.
The yen is likely getting hit today due to strength in the dollar and the euro. Earlier, comments from Bundesbank President Jens Weidmann, who stated that the euro is not seriously overvalued, caused the common currency to go higher.
On Saturday, while currency markets were closed, the Japanese economy minister said that the government wanted to see the Nikkei surge 17 per cent from its current levels by the end of March.
The Tokyo Stock Exchange was closed today for the holiday, so observers were unable to gauge the stock market’s reaction. However, stock index price appreciation implies a lower yen, so that is likely contributing to the currency’s decline as well.
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