The Japanese Yen lost some of its ground today against the US dollar, the USD/JPY rose to 78.46 level from the recent low at the 77.97 level. The Tokyo Stock Price Index rose today by 2.54 per cent. In other words advanced from the low at 691.34 level that reached yesterday, to the 709.64 level as the JPY fell slightly against the most of its peers and Japanese exporters were benefited.
The Japanese currency has strengthened the previous week on risk aversion of investors due to the sovereign debt crisis in Europe. Therefore the USD/JPY fell to record lows, a pull back to higher prices could be seen on better news coming from Europe. Moreover, Central Banks Governors and Finance Ministers of the G7 are holding a call today to discuss Europe’s situation and the risks to the global economy of a euro-zone collapse.