The Yen Is Doing Well Amid The Financial Turmoil
It would appear not. In actual fact the Japanese yen is seen as something of a safe house on many days. For example, the US dollar looks good against many currencies on a day to day basis – but put it up against the Japanese yen and things can look very different.
On New Year’s Day this year the Japanese yen was bagging 0.0110 US dollars. This dropped to a low point of 0.0105 on the 6th January, but then things were on the up again – at least for the yen.
The following day it went up to 0.0107, and the day after that saw the yen asserting its strength once more to 0.0109. It then finished the week on 0.0110 – proving that when times are hard, everyone turns away from the US dollar and invests in the Japanese yen instead.
It’s not surprising really when you look into the situation in more depth. As many Forex websites have revealed in the past, the yen is one of those currencies that isn’t quite as uncertain and volatile as many others. Ironically the US dollar also has this status attached to it – although at the moment it is clear that it isn’t quite in the same league as the Japanese yen.
Last month progressed well for the yen against the US dollar too. From the 12th it was up to 0.0111, and although it dipped back down to 0.0110 on the 16th it went back up to 0.0111 just five days later and didn’t relinquish that position again for the whole month. The highest point came on the 22nd, with a rate of 0.011292.
The yen was doing well elsewhere as well. Another good currency to measure its progress against is the beleaguered British pound. On New Year’s Day it claimed 0.00755 per pound, and it reached a high point of 0.00826 on the 23rd before dipping back slightly to close out the month on 0.00780.
So it seems that if you are looking into the Forex markets and you don’t want to risk all your cash on a currency that is highly volatile, you should look at the yen. The reasons why it is regarded as being so stable are complex, but one of the latest news stories from Bloomberg about the stability of the yen sheds more light on how it fares in such situations. You can read the story at the following URL.
The yen has also recently enjoyed a very steady upward climb against the Euro. Europe has been struggling greatly in the current financial and economic situation. As such its currency has been battling to retain some authority over many other major currencies around the world. But the yen proved too much for it during January.
From a standing start of 0.00792 on the 1st, the yen fluctuated marginally against the Euro for the next week before settling on 0.00804 on the 8th. It then climbed steadily up to 0.00854 on the 15th. After a slight dip going into the weekend there was more assertiveness exhibited by the yen the following week.
That was when the Euro was battered down by an exchange rate of 0.00879 to close out the week on the 23rd. It seemed that the reliability of the yen is far beyond that offered by the Euro. It did dip back slightly to finish the month on 0.00869, but that was still up considerably on where it started.
As you can see, there is a lot to be said for the strength and steadiness of the yen. Many people looking for a huge return on their Forex efforts will go elsewhere. But for the steady returns and less risk that some people are after, there is nothing better than the yen for the long term basis.
Keep an eye on the news over the next few weeks to see where the yen stands then against other currencies. You will no doubt see that many other currencies remain volatile and uncertain. The yen however will stay steady, and while it may fluctuate a little you can be sure that it won’t take a huge nosedive.
And that is more than can be said for many other currencies at the moment.