The Japanese Yen strengthened against most of its major counterparts yesterday, continuing to prove that for the time being that this is the solid currency that traders can rely on to provide them with steady profits. The Yen extended gains versus the Dollar on Wednesday, to trade at about 87.25. The JPY also saw bullishness against the GBP and closed at 145.80.
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. The yen has gained around 14% against the dollar in the past year, hurting earnings for export-dependent Japanese companies.