Following a brief reprieve in its downward trend yesterday, the Japanese yen is again falling behind against the euro and USD. As of this morning, the USD has gained 0.7% against the yen putting the USD/JPY at 80.56. This marks the yen's weakest mark against the greenback in nearly eight months.
The euro also was able to make gains this morning against the yen. As it stands, the single currency is enjoying a recent push and is trading at 107.76. This marks its highest point since last November.
There are a number of reasons for the ongoing decline in the Japanese Yen. First, the decision last week by the Bank of Japan to inject millions of yen into the economy and purposely weaken the currency is taking effect. More recently, the USD has fared well against the JPY as numbers regarding the U.S. recovery efforts are showing good signs. Thus, as the overall health of the U.S. economy improves we can expect to see solid strength from the USD against more volatile currencies, such as the Japanese yen.
Heading into this afternoon, be on the lookout for announcements from the U.K. and the U.S. The U.K. will be releasing their revised GDP numbers while the U.S. will be releasing its monthly home sales report. Keep an eye on how these announcements affect the market.
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