The yen rose against the GBP and EUR on Monday as investors trimmed stretched risk positions in higher-yielding currencies. The JPY was bolstered by continuing investor concerns over mounting fiscal problems in Euro-zone countries and doubts over the pace of the worldwide economic recovery. By yesterday's close, the JPY rose against the GBP, pushing the oft- traded currency pair to 133.35. The yen also saw bullishness against the EUR and closed at 120.70.

Further strengthening could be seen in the Yen if other nations begin to raise interest rates in order to ward off inflation. This could potentially wreak havoc on the Japanese economy by making Japanese exports relatively more expensive when compared to their foreign counterparts.