Yen Weakened In Comparison To The Euro

On Monday, the Yen’s exchange rate on the world’s markets was at the lowest rate compared to the Euro since the start of March.

Around midday, the Euro reached the highest level against the Yen in the last two and a half months, of 156.34 Yen. The Dollar also strengthened against the Japanese currency, by 0.4 percent, so it traded at 117.17 Yen.

Investing in currencies with higher returns

The joint European currency was unchanged compared to the Dollar at 1.3311 dollars after the end of last week reached the highest level against the Dollar in the last three months, of 1.334 dollars.

The recovery on the share markets has increased the attractiveness of currencies with larger returns, which resulted in the strengthening of currencies like the Australian and New Zealand Dollars.

- Higher risk assets recorded a large inflow of investment. After the sudden rise of the Tokyo Nikkei index, the Australian and New Zealand Dollars have recorded a solid recovery – stated Steven Saywell from Citigroup.

China is slowing economic growth

China has for the third time in less than a year raised key interest rates to slow the sudden growth of loans and investments, and in turn slow down economic growth. The Juan briefly reached the highest level since the separation from the dollar, of 7.330 dollars.

In the mean time, investors have redirected their attention to the decision of the central banks of America and Japan. It is expected that the Fed will keep current interest rates of 5.25 percent, and special attention will be paid to report on the state of the American economy.

The Japanese central bank should also keep its key interest rates at current levels after it raised them in February to the highest rate in ten years, of 0.5 percent.