Japanese Yen down against US Dollar as American economy improves

Japanese Yen down against US Dollar as American economy improves

09-16-2009 14:35

Various economic data indicated today that the North American economy could be improving, on which the Japanese Yen dropped versus the Greenback, as investors starting to prefer Dollar-priced trading options instead of the relative safety of the Yen in times of uncertainties. The US Dollar may be undervalued according to some currency analysts.

American economy improves

The US Dollar finally managed to grow versus the Japanese Yen and various other currencies as Barack Obama, the current president of the United States, announced that unemployment is moderating and a lot of segments already demonstrate economic growth. The Pound Sterling also gained against the Japanese Yen previously as the UK housing market seems to stabilize, increasing confidence for the Sterling, despite the fact that earlier gains were later clipped. The Greenback could climb even further against the Japanese currency since positive reports from the US could reduce demand for the safe-haven Yen, impacting its price.

Japanese Yen down

While the economy remains resilient, mostly the North American one, the Japanese Yen will probably lose its attractiveness, because, despite favorable circumstances, there are other higher-return assets from Asian regions, like South Korea, that posts more favorable economic results than the Japanese economy, while it also offers better interest rates.