Yen stronger on risk aversion

Yen stronger on risk aversion

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The Japanese yen strengthened on Wednesday as investors continue to stay away from risky carry trades, doing especially well in relation to the Australian and New Zealand dollars as it added 1.3 percent to ¥96.74 and 1.5 percent to ¥84.04 respectively.

The euro and US dollar were also lower versus the yen as the greenback dropped 0.3 percent to ¥117.21 while the euro was 0.8 percent lower to ¥157.89.

However, the euro declined in relation to the dollar to $1.3490 and the Swiss franc was also lower versus the US currency, trading 0.2 percent lower at SFr1,2133.

Sterling weakened against the US dollar as well, dropping 0.2 percent to $1.9922 after the release of the minutes of the most recent Bank of England meeting.

The minutes showed that the Bank’s Monetary Policy Committee voted a unanimous 9 to 0 to hold interest rates steady at 5.75 percent and further held no overt statements that a rate increase might be in the cards soon.

In addition, the pound dropped 0.4 percent to ¥233.44 against the yen.