Posted On: December 09, 2014
The yen rose 2.2 percent Tuesday morning to 118.08 per U.S dollar, its largest gain since June 2013, Bloomberg reported. The publication also noted that the currency grew 1.2 percent to 146.93 per euro.
It has gained against all but one of its 16 major peers as traders speculate that stricter lending rules in China may slow global economic growth. The currency's value increased as the Nikkei 225 Stock Average declined for the first time in eight days.
"The yen has strengthened amidst more risk-averse trading conditions as global equity markets and commodity prices have declined," Lee Hardman, a foreign exchange strategist with Bank of Tokyo-Mitsubishi UFJ Ltd. in London, told Bloomberg.
The yen's slight rally on Tuesday follows a seven-year low of 121.85 per U.S. dollar on Monday, the Japan Times reported. Finance Minister Taro Aso said that the yen's recent fall has boosted the economy and increased jobs, according to the publication. Akira Amari, Japan's minister of economic and fiscal policy, said that a decline in energy prices will offset the currency's weakness.
The Times noted that Aso held a different stance in November, when he warned that the yen was selling too quickly.
Category: Industry News
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