The Yen exchange rate has risen amid an increasing demand for safe assets after China responded to US customs duties, asking the traders to focus on the date of the rise in interest rates by the bank or Japan. The value of the Japanese currency increased by 1.3% to 144.33 yen against the dollar, which is the strongest level since October 2, after China announced that it would increase fees on the goods imported from the United States to 84%. The options contracts that benefit from the continued gains of the yen have increased, while the threat to increase the power of the foreign exchange markets expected the bank to stop monetary policy to tighten a course. Looking for secure haviths raising the trade war between Washington and Beijing has set fire to a large scale sale in the market and stimulates the search for safer securities. The Governor of Central Bank of Japan, Kazu Uida, said on Wednesday that the Central Bank is monitoring the urgent uncertainty over the global trade policy, although inflation and local economy are still generally compatible with the expectations of the bank or Japan. Money markets now expect a temporary stop to raise interest, after expecting an increase of 30 basis points earlier this month. In the options market, the scope of monthly risk -effects expanded to 309 basis points – the highest level since August – amid the acceleration of traders to buy contracts that benefit from the continuation of the high value of the yen. This fluctuation is in favor of the Japanese currency for the longest period in two years. The fluctuations have risen to their highest levels since March 2023. The momentum in the immediate market was largely driven by real cash accounts, while hedge funds treated the traders in the foreign exchange market, who asked not to reveal their identity because they were not authorized to speak in public.
The value of the Japanese yen reaches its highest levels in 6 months
