The Japanese Yen dropped to it's lowest levels since 2011 against the Euro during trading on Wednesday as lawmakers in the United States passed a bill to help avoid the much publicized "fiscal cliff".
On Tuesday, the US Congress approved a tax increase that is expected to prevent the world's largest economy from falling into recession.
As a result, the Euro rose to it's highest levels against the Japanese currency since July 2011.
On Tuesday, the US Congress approved a tax increase that is expected to prevent the world's largest economy from falling into recession.
As a result, the Euro rose to it's highest levels against the Japanese currency since July 2011.
The Dollar earlier slid 0.5% to $1.3272 per Euro. The Yen dropped to a level not seen since July 2010, as low as 87.33 per Dollar, and slid 1.2% to 115.82 per Euro.
The Yen's fall came after Japan's Prime Minister, Shinzo Abe, reiterated his intention to weaken the Yen.
Abe said yesterday that in his opinion the most urgent issue for Japan is to break out of currency appreciation and deflation, and that "Bold" monetary policy is one of the three prongs to his economic measures.
He has called on the Bank of Japan (BOJ) to undertake unlimited money printing in an effort to boost growth and achieve an inflation goal, of twice its current target, of 2%. The BOJ is set to hold its first policy meeting this year on the 21st and 22nd of January.
For the next month or so I expect the Yen to remain weak, as much depends on what Japan's government is able to achieve as relates to the central bank.
There was no trade in major markets yesterday, and Japan is closed until Thursday 4th January for national holidays.
German's chancellor, Angela Merkel, in a New Years address has said that the economic environment will be more difficult in 2013 and that Europe's sovereign debt crisis isn't yet over, although progress has been made.
The Euro has strengthened versus the Dollar last year, as the European Central Bank (ECB) unveiled a bond buying program in September to contain the region's debt crisis.
The Yen's fall came after Japan's Prime Minister, Shinzo Abe, reiterated his intention to weaken the Yen.
Abe said yesterday that in his opinion the most urgent issue for Japan is to break out of currency appreciation and deflation, and that "Bold" monetary policy is one of the three prongs to his economic measures.
He has called on the Bank of Japan (BOJ) to undertake unlimited money printing in an effort to boost growth and achieve an inflation goal, of twice its current target, of 2%. The BOJ is set to hold its first policy meeting this year on the 21st and 22nd of January.
For the next month or so I expect the Yen to remain weak, as much depends on what Japan's government is able to achieve as relates to the central bank.
There was no trade in major markets yesterday, and Japan is closed until Thursday 4th January for national holidays.
German's chancellor, Angela Merkel, in a New Years address has said that the economic environment will be more difficult in 2013 and that Europe's sovereign debt crisis isn't yet over, although progress has been made.
The Euro has strengthened versus the Dollar last year, as the European Central Bank (ECB) unveiled a bond buying program in September to contain the region's debt crisis.
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