Bank of Japan Responsible for Weekly Losses of Yen

The past trading week was marked with several policy meetings of major central banks. The most interesting of them turned out to be the Bank of Japan meeting that resulted in a surprise cut of the interest rates into negative territory. As one can expect, this resulted in a slump of the Japanese yen. Not many market participants had expected Japan’s central bank to reduce rates, thinking that it would rather tweak its assets purchase program or implement other form of stimulus if any at all. Yet the BoJ surprised virtually everyone, announcing negative interest rates and

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Yen Edges Up on Demand for Safer Assets

Yen is heading higher as investors and traders turn to more traditional safe haven assets in response to uncertainty and volatility in the stock market. Yesterday, the yen was still relatively week. Thanks to the recent announcement from Bank of Japan policymakers that there would be negative interest rates in an effort to stimulate the economy, yen has been struggling. The BOJ seems determined that Japan will “win” the currency wars underway to make currencies relatively cheaper, and offering a reason to buy goods from particular countries. Today, however, there has been some demand for the yen, and the currency is

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Global Stocks Sink Benefiting Japanese Yen

The Japanese yen rallied today as the drop of crude oil led to a rout of global stocks which in turn resulted in risk aversion and demand for safe haven assets. Crude oil has attempted to rally intraday but failed to keep gains and retreated below the opening level. European stocks dropped more than 2 percent as a result, joined by equities of other regions in a decline. The yen profited from this, getting additional support from the

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