Japanese Yen Reducing Sharply V.S. The Greenback On Thursday

The yen depreciated sharply vis-à-vis the U.S. dollar on Thursday as the greenback tested offers around the ¥93.15 level and was supported around the ¥91.90 level.

The pair gained 2.63% in 2009. In the absence of major news overnight, traders continue to square their books at year-end and react positively to dollar-supportive U.S. economic data.

Ongoing doubts concerning Japan Airlines and the company’s possible bankruptcy are having a negative impact on the yen.

Standard & Poors yesterday warned Japan’s “AA” credit rating could be lowered if Japan fails to stabilize its debt levels.

The Japanese government released a long-term strategy yesterday that aims to achieve GDP growth of an average 2% over the next decade.