Risk Trends With The USD And The JPY
With the current financial and economic trends being affected internationally thanks to the housing market in the United States, many forex investors have cringed away from taking risks. This hasn’t just been contained just to the American dollar; it has affected currency on the international level.
Japanese Yen pairs have always been the best gauge of risks, with interest rates of only 0.50 percent and getting sold off in massive quantities during low volatility and bought up quickly when the equities fall. But right now, even the Japanese Yen is in better shape than the American Dollar. Currently, the Yen is up almost 15 percent against the dollar since August of 2007 even though the Dow Jones Industrial Average lost over eight percent during the same time frame. It will be interesting to see how it predicts risks over the next few months as the American economy continues to fluctuate during this economic crisis.