Amidst currencies like the US dollar, Euro and English pound, the Japanese yen continues on a five month high. For those of you wondering why, it’s a question that can easily be answered by looking at our current geopolitical tensions. Financial markets have a good eye on political developments and will surely opt to put their money into safe havens over places filled with tensions. Right now that safe haven is Japan.
Due to worries over France’s current election and America’s possible military intervention in places like Syria and North Korea, Japan can be considered a safe bet. The best place to put your money.
Through the week the USD has been a continuous slope, falling on tuesday and continuing its fall on wednesday. It now stands at 0.1 percent against a handful of the world’s major currencies to 100.62. This could be due to North Korea’s recent threat of nuclear attack against America if they show aggression and Donald Trump’s nonchalant reply. Trump has also accused Russia of trying to shield the Syrian government from the blame over the recent Syrian gas attack.
It’s moves like these that no doubt bring the dollar down and currencies like the yen up. America isn’t doing anything bad, but with all the back in forth it’s distorting its face of stability. Japanese currency rose one percent on tuesday and its gains are on a constant uprise. Within asian trade, Japan is selling 109.35 to the dollar.
With Japan taking up a neutral stance, it’s advised to keep an eye on them. No doubt this is just the beginning of continuous rise. If you’re in the financial market, maybe it’s time you think twice about where you’re putting your money.