Yen Enter Second Week of Losses as China Fuels Risk Appetite
The yen declined to a two-week low against the euro and lost versus several other currencies as a report in China indicated an increase in manufacturing, helping investors to be confident to purchase high-yielding assets throughout the world.
The Japanese yen had a very negative performance this Wednesday losing ground against all main 6 currencies traded globally, after China post the fourth manufacturing expansion in a row, suggesting that the Asian nation is recovering quickly from the global slump and may lead other countries on their way out of recession, raising confidence among traders to sell their assets in Japan in order to purchase riskier assets, since the yen is the lowest yielding currency option and often referred as a refuge in stormy economic times. The euro posted the sharpest gains versus the yen as European stocks had a positive day generally, adding to the already favorable scenario for the euro to rally against the Japanese currency.
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