Yen Climbs on Market Sentiment Pessimism

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Yen Climbs on Market Sentiment Pessimism

The yen continued to profit from a favorable scenario for refuge currencies as traders are increasingly concerned regarding the economic trends for 2010, as requirements for bank loans are becoming stricter, fact which could slow down the growth pace in most of the world’s wealthiest nations.

Risk aversion remained high in the beginning of this Wednesday’s sessions as the International Monetary Fund insisted on statements stressing on the weakness of the current global economic situation, after it announced last week that Greece may need a bail out from the institution to reorganize its public accounts. The yen traded at the highest level in 9 months versus the euro as the European Central Bank is increasing its concerns regarding some Eurozone members growing budget deficits, as its the case in most of southern European nations using the single currency.

The global economic scenario took a grimmer trajectory then what most forecasts expected for the beginning of 2010, and as lending restrictions to avoid new credit bubbles are likely to become a global trend, the yen have good odds of gaining versus high-yielding currencies, as the expected acceleration for GDP figures in the first quarter of the current year has significant chances of becoming a global frustration.

EUR/JPY traded at 125.81 as of 01:20 GMT from a previous intraday rate of 128.11.

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